I followed your instructions but get the same result. THEN I reread your explanation. Maybe I am confused.
You said that NY adds up all the income and THEN calculates the tax on that amount. AND then subtracts the taxes paid to Indiana. Assuming that is true....
Suppose the tax rate in Indiana is 3% and the tax rate in NY is 6%. Suppose the capital gains is $100,000. Thus, the Indiana tax would be $3000 and the NY tax would be $6000. Subtracting Indiana tax from the NY tax means that I would still have to pay $3000 in NY in addition to the $3000 paid to Indiana. Is this correct?
If so, I do not understand why I have to pay taxes in NY on an income source that is solely within Indiana. In other words, I would think that NY should subtract the $100,000 from the Federal adjusted income BEFORE it figures the tax, NOT after.
Please clarify.
Thanks,
Van
