State tax filing
No. You cannot claim a credit for tax paid to Massachusetts on your New York return, even though it seems like NY is double taxing your income.
It is not. NY is including your income to determine your base tax rate. You are only paying tax on the NY income percentage of the base tax.
For example, if you earned $100,000 everywhere and had $20,000 in total deductions, then your NY base income would be $80,000. If the NY tax on $80,000 is $x and you earned $50,000 in NY then your part-year/non-resident tax would be 50% ($50k/$100k) of $x.
New York requires employers to report in Box 16 (state wages), income earned everywhere so if you worked for the same employer all year, on your NY return you will have to allocate the amount earned from January to October either by days or by percentage.
The New York section will ask you whether all your income was earned in NY.
New York requires employers to report in Box 16 the total amount earned everywhere (not just in NY). That's just the way they do it.
Make your adjustment in the New York section.
The New York section will ask you whether all your income was earned in NY.
- On New York Income Allocation, say No to Were all of your wages and/or your self-employment income earned in New York State?
- Tape Edit on "Your W-2 on Your Form W-2 Summary"
- Choose Allocate by Number or Days or Allocate by Percentage on Allocate Wages to New York (percentage is usually the easier calculation)
