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New York resident with rental property in Oregon

I realize that NYS likes to tax everything, but is there a place where you are able reflect whether the income is from NY vs elsewhere? Or a place to enter a credit? Or is this already calculating on what I am seeing in the total?

 

thanks!

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1 Reply
AmyC
Expert Alumni

New York resident with rental property in Oregon

1. Yes, you will enter the OR income for NY credit.

2. There is a credit for other state tax paid.

3. You may need to  redo your NY return.

 

As a NY resident, NY gets to tax all worldwide income but since 2015 they are not allowed to double tax income from another state and must offer a credit. 

 

Your resident state taxes all income but gives a credit for income taxed by another state.  Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.

 

  1. First, prepare your non-resident OR return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
  2. Then prepare your resident state NY return and it will generate a credit for your income already being taxed in the non-resident state. 
  3. The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state,  if they have a higher tax rate along with differences in how the taxable income is calculated.

 

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

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