topic There seems to be a bug in state returns this year. I get a much higher rate via Turbotax than what i see online in Get your taxes done using TurboTax

There seems to be a bug in state returns this year. I get a much higher rate via Turbotax than what i see online

amelie-bernard — Tue, 24 Feb 2026 00:14:17 GMT

Re: There seems to be a bug in state returns this year. I get a much higher rate via Turbotax tha...

DawnC — Tue, 24 Feb 2026 00:43:26 GMT

Can you clarify or provide some more details regarding your issue?

Re: There seems to be a bug in state returns this year. I get a much higher rate via Turbotax tha...

amelie-bernard — Tue, 24 Feb 2026 00:59:36 GMT

I have had similar income YoY over the last 3 years and my state return has been consistent and quite positive

(it usually offsets my federal amount due).

This year, it s almost nothing.

The rate applied is also much higher than what i can find online as applicable tax rates for NY and NYC

(i.e. it over-estimates my state tax owed by a meaningful amount)

Re: There seems to be a bug in state returns this year. I get a much higher rate via Turbotax tha...

amelie-bernard — Tue, 24 Feb 2026 01:18:42 GMT

The issue is not with NYC tax; it's with NYS tax rate - the rate applied just for state is ~10% and believe me, I don't make 25M a year; so this is not the correct rate for my bracket. So it feels there is a bug in the calculation this year

Re: There seems to be a bug in state returns this year. I get a much higher rate via Turbotax tha...

LenaH — Mon, 13 Apr 2026 17:48:07 GMT

New York State uses three different methods to calculate tax for residents. The method you will use depends on two specific lines on your IT-201. These are Line 33 (your NYS adjusted gross income) and Line 38 (your NYS taxable income).

If Line 33 is $107,650 or less and Line 38 is under $65,000, you have to use the NYS Tax Table.
If Line 33 is $107,650 or less and Line 38 is $65,000 or more, you have to use the NYS Tax Rate Schedule.
If Line 33 is $107,650 or more (regardless of your Line 38 amount), you are required to use the NYS Tax Computation worksheet, which is a much more involved calculation.

The most common mistake is when someone with a NYS AGI (Line 33) of $107,650 or more uses the tax table or the rate schedule instead of the computation worksheet. Those methods will produce an amount that is typically lower than the correct amount of tax. Not following the correct calculations for your AGI and taxable income will result in interest and penalties.

To determine which method applies to you, be sure to check Line 33 and Line 38 of your IT-201. To get a preview of your return before you file, you can follow the instructions here.

@amelie-bernard