I filed a Non-Resident NYS tax form for 2019 as married filing jointly. At the time, we lived in NJ for the full year. I worked (at least part of the year) in New York State. My wife was unemployed and earned/received unemployment benefits from NJ, while living in NJ (full year on both accounts). Her previous employer was also in NJ.
When filing the 2019 form, I missed my wife's unemployment income on both the federal and state returns. Consequently, once the IRS shared the missing income with NYS, NYS gave me an assessment for additional taxes due. While I understand their calculation includes federal income, I cannot comprehend how I can be taxed on non-NYS income while being a NYS non-resident. The only change they are picking up is the NJ unemployment so its clear they are effectively taxes our NJ income. How can this be legal? Are there any laws that govern how states can tax? The federal income amount is a direct input into the NYS tax calculation
Appreciate any insights.
