Hello,
I am filing a tax return in both NY and NJ. I work in NY and live in NJ.
It is my understanding that interest income should be allocated and taxed in the state where I reside, in this case NJ. So let's say I have $100 in interest income. I pay NJ tax on that $100, but the $100 should be exempt from NY taxes. Is this correct?
In turbotax, the interest income is being included in my New York adjusted gross income. I am going through the income allocation steps on my NY return and attributing $0 of interest income to NY. However, these amounts are not deducted from my NY taxable income in the end.
How do I fix this?
