ThomasM125
Employee Tax Expert

State tax filing

No, there is not a bug in the program. New York will tax all of your income earned and then reduce the tax by a percentage representing the income earned in another state. So, you will see all of your New Jersey income included in the taxable income for New York, but the tax then calculated will be reduced by a percentage to compensate for the income not earned in New York. You will see a question on the New York return regarding how much of your total income belongs in New York, you need to answer that question accurately.  It will effect your tax, but not your taxable income in New York.

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