I'm looking at my NYS tax return Form IT-203. In this scenario I have interest income from my bank accounts of let's say $25 and interest from a US bond of $500.
In the Federal column, Line 2 Taxable Interest Income, it includes all of my interest income totaling $525. Then in Line 20 Federal amount, it adds $525. Then in Line 27 it subtracts $500. The total NY adjusted gross income on line 31 and all dependent calculations looks like it's including the $500, which should be exempt, and double counting the $25.
Is this a glitch or am I not understanding the calculation? Do I need to update something? None of the interest income is allocated to NYS, but the calculation would impact the tax base. In this instance.
