But my US gov note interest is not included as taxable income for NY. Then how can turbo tax subtract that amount from other taxable/wage income? That means I am not paying NY tax on true taxable income. Let me give s simple example:
Federal taxable income $100
Fed taxable US gov interest $10
NY state taxable wage $100
Above $10 from Fed taxable income already excluded on NYS taxable income. If you deduct this $10 from NYS taxable income, I am paying tax only on $90, which is wrong.
And BTW, US gov bond interest is also not taxed in NJ. Please read pdf doc link page 23 for IT-203 NY non-resident tax form I posted in my first message.
