My FAGI is 147,104, Wage is 150,026 which implies the factor of 1.0198. But why would I have to pay tax on wage, not FAGI? I am deducting an investing loss to get to FAGI

[kalyan-parhi]

My bad, it's for NY state tax calculation. They have a non-obvious method for calculating the income tax if the AGI goes above 107,650. The basic tax amount ( Tax1 ) is calculated using a tax rate schedule using NY Taxable income https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=57  and then there is an add-on on top of that using Adjusted Gross income ( https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=59 ) making it T2 ( T2 > T1 ), and then TurboTax applies a NY income tax factor which seems to be a ratio R of my Wage in W2 and AGI ( R comes out to be 1.0198 ). This makes my final tax obligation T3 = 1.0198 * T2, I don't understand why this R needs to be multiplied.

[SweetieJean]

Federal Adjusted Gross Income ?

[SweetieJean]

Why do you think you are being taxed just on the Wage number?  Neither Gross nor AGI is what you are being taxed on, but rather Taxable Income.

See:

https://www.irs.gov/pub/irs-pdf/f1040.pdf

https://www.irs.gov/pub/irs-pdf/f1040s1.pdf

[kalyan-parhi]

Thanks, just added some details I missed