topic Re: NY State Return in State tax filing

NY State Return

evyvball — Fri, 06 Mar 2020 17:14:20 GMT

I work for a NYC and live in NJ so I am subjected to Section 1127 Withholding. In past my employer but the withholding in box 14, but this year they put it in box 19.

With that said, it appears that I have paid too much taxes, as a non-resident. The change in where my employer put the Section 1127 withholding is causing a confusion.

My question is, should I have an offset for Section 1127 Withholding on my NY Tax return? If so, where would it go.

Something seems off on how it is being reported.

Thank you for your help.

Re: NY State Return

ReginaM — Sat, 07 Mar 2020 17:05:31 GMT

Section 1127 is a New York City tax on city employees that live outside of the City. Accordingly, your employer entered your Section 1127 correctly on Line 19 of your W-2.

While in your TurboTax account, did you go through the 1127 section for the State of New York?

Make sure all data is entered correctly in your State Return. Select State Review to make sure that TurboTax thinks that it is correct. This State Return can be a little confusing.

Hopefully this helps!

Re: NY State Return

evyvball — Thu, 12 Mar 2020 01:16:34 GMT

Thanks for the reply.

I redid all you stated and I am still questioning TurboTax calculation

Let's say I paid $5k for Section 1127 Withholding and $5k in State Taxes. I would therefore would have paid $10k in state and local taxes. When I put all this information in, and I go to line 38 on my NY state tax, it says I should have paid $6k. Therefore showing that I over paid and am due a $4k refund.

Am I looking at this wrong? Shouldn't the $5k for 1127 be included above the NY state tax computation? And leading to amount owe/refunded be netted to almost $0?

I also filled out form 1127 and I am due money there as well.

Sorry for the multiple questions, but I want to make sure I am filing this correctly so I don't get penalized in the future since it is such a huge jump in difference.

I have done tax returns for NY residences that work in NY and local taxes in inclusive on line 47a on Form IT-201. I think there should be an equivalent for Non-resident, form IT-203 but I can't seem to get it into Turbo Tax correctly.

Thank you for your help.