topic Allocating non-resident New York State taxes not reported on a W-2 in State tax filing

Allocating non-resident New York State taxes not reported on a W-2

kpajonas0 — Wed, 01 Apr 2026 00:50:05 GMT

I am using the desktop edition. I receive a W-2 for work in NJ, and I live in NJ, but I have worked in New York City 33 days last year. I want to allocate my income based on days.

My wife has a K-1 that has a small percentage as NY State sourced income.

I also have a NY 529 plan - where does that get entered

The New York State 2025 Turbo Tax is not as user friendly as the federal version (no Guide Me!). It seems different than last year, it just asks for numbers instead of providing guidance. Why are there no instructions, or a way to move between income and deductions - am I missing something?

Re: Allocating non-resident New York State taxes not reported on a W-2

AmyC — Wed, 01 Apr 2026 16:21:18 GMT

You seem to be working in Forms mode instead of going through the interview, which does guide you. Switch over to step by step to get these entries correct.

1. NY W2

In the New York state interview, look for a screen titled "New York Income Allocation."
It will ask, "Were all of your wages and/or self-employment income earned in New York State?" You must select No.
See a list of your W-2s. Click Edit next to your NJ W-2.
Choose "Allocate by Number of Days"
Enter 33 days you actually worked in NY. TurboTax will calculate the percentage of your federal wages that NY is allowed to tax.

2. K-1

Entered in the federal section with NY listed in the state box.
In NY, look for the "Changes to Federal Income" or "Business Allocation" section. TurboTax should pull the NY-sourced amount from the Federal entry. If it asks you to manually allocate, you only enter the amount listed in Column C of your wife’s NY K-1 (the NY-sourced portion)

3. 529 NY Plan

New York provides a deduction of up to $10,000 (for Married Filing Jointly) for contributions to a NY State 529 plan.

Look for "Adjustments to Income" or "New York Subtractions"
Locate College Tuition Savings Deduction.

Note: Only contributions to the official New York 529 plan (Direct or Advisor) qualify for the NY state deduction. Contributions to other states' plans do not count for this specific NY tax break.

Re: Allocating non-resident New York State taxes not reported on a W-2

kpajonas0 — Thu, 02 Apr 2026 23:32:32 GMT

Thanks for replying, @AmyC . I am in interview mode. After verifying my info and that I'm a non-resident, I'm asked who has NY sourced income and I answer "both of us." I say no to all of the wages / income earned in NY state. Then I'm asked if I have NY state wages to report. If I say "yes" then I get two boxes to fill-in: "Employer" and "New York State Wages." I decided to click Continue after this, and then I was asked the Allocation Method.

That is totally backwards - Turbotax should ask me how I want to allocate and do the calculation based on the W-2. I feel like this was how things worked in the past, but maybe I'm mistaken. Very frustrating.