Double Tax income (DC/NY)

[dorothyue]

I am self employed, live in DC but have some income from NY, in the form of 1099s and reported on Schedule Cs. I am having 2 issues: 

1) I'm trying to file a NY non-resident but it's not letting me edit my Schedule Cs imported from Federal, thus the amount in my NY non-resident form is my full income filed with Federal. My Schedule Cs contain both income from DC and NY. Will I need to file a allocation form in order to clarify not all my income in my Schedule Cs should be taxed in NY? 

2) I went back to my DC state tax section, and it's asking me the income taxed by both DC and NY, and the taxes I paid in NY. How do I figure the numbers out? 

Much appreciated, thanks! 

[AmyC]

1. You need to allocate the business income. You have to choose the edit button to allocate.

2. Follow these steps to locate your tax liability for NY and enter in DC

1. Log into your return
2. Select state taxes
3. Enter the non-resident NY for which you need the liability
4. On the left, go to Tax Tools
5. Select Tools
6. Select View Tax Summary
7. You will see Summary of your NY Return at the top.
8. Locate the line that says Taxable Income
9. Locate the line that says Total Tax
10. Write that number down or copy it, keep track
11. Return to your resident DC return and enter that number where it asks for the liability for NY.
12. Some states tax income the federal does not. For example: NJ taxes money you set aside in your retirement plan. Each state has different rules. 

You get credit for the lower state tax on the lowest taxable amount.

• Each state calculates taxable income differently. 
• Each state has its own tax rate/ system.
• You get the lowest of both categories as a tax credit