It isn't including the entire federal income in your New York calculation though.
The forms make it appear that it is going directly from the Federal amounts to the state amounts. But there are adjustments made before you see the state amount. The state will only tax you based upon your New York source income.
I have attached a blank Form IT-203. If you look at page 2, you will be able to see how it breaks it out between the federal amounts and the New York amount. At the bottom of that page, you can see the adjustments made to reach the New York amounts.
Blank NY-IT-203 Nonresident form
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
