I worked half yr in NY (Res) and half yr in SC(Res). NY income is copying over from federal to include SC income. I have reentered and reviewed twice. How can I fix that?

Forum|Forum|5 years ago
March 1, 2021
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TomD8

Alumni - Champ

New York uses your total income to determine your tax rate, but then it applies that rate only to your NY income.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

ToddL99

Level 13

Expert Reviewed

There probably isn't anything that needs to be fixed.

What you are seeing is accurate, but  NYS is not taxing the income you made after you became a resident of SC.

Your total 2020 pay appears in the NY forms, summaries and interviews because NY uses your entire AGI to calculate your tax on NY income.  They do this  even if you were a resident of New York for 1 day.

It isn't, however, as bad as it appears. They calculate what your New York tax would have been if you earned everything in NY, but then prorate that tax based on how much of your income was earned while a NY resident. 

For example, if the NY tax on your entire 2020 income was $10,000 but only 30% was earned as a NY resident, your NY tax would be 30% of $10,000 = 3,000.

Why do they do this? So they can tax your NY income at the highest possible tax rate, based on your entire AGI.

msomara81Author

Level 2

Thank you for your response. Just so I'm sure - NY uses my AGI, my deductions are applied to the AGI, and I am taxed at the remaining balance, which is more than I actually made in NY. Which also makes it so I made less money than last year, but am paying more in taxes.