Allocate federal/NYS adjustments to income

[ZSha]

Hello everyone. For year 2019, I lived in Colorado (January 2019 to June 2019) and in New York (June 2019 to December 2019).

1. While in Colorado, i worked two W2 jobs; wife didn't work (so two W2 forms from Colorado)

2. In New York, I did self employment work only for about 3 months in NYC (October 2019 to December 2019) and wife has been working a W2 job (so one W2 form and a 1099 form)

In the state portion of Turbotax, its asking me to allocate federal ($4415) and State ($-9640) adjustments. In NY state, I only lived in NYC (not Yonkers). Can anyone please tell me what this is and what I should put inside those boxes?

Thanks

[DaveF1006]

Is the $4415 your total net income during the year after adjustments and the standard deduction was applied. if so, you need to allocate that portion of your income as NY sourced income. Aslo you have adjustments against your income of $-9640. You need to determine if these adjustments occurred while living in Colorado or living in NY.  You need to indicate what portion of those adjustments are NY based adjustments and report that in your return. if you are not sure on the adjustments you might apply a ratio.  So since you lived in NY for 7 months (06/01-12/31) you can take 7/12 X -9640 to determine a pro-rata allocation for NY. 

Anyhow, this is the best  assessment i can give you without looking at your actual return. 

[ZSha]

Hi Dave, the $4415 is the federal adjustment and not the net income. Same goes for $-9640. How do I determine where these adjustments came from and what portion of these is applicable to NY vs Colorado?

Thanks

[DaveF1006]

Try the ratio that I suggested and apply the ratio.  So in other words, 7/12 is a ratio that is determined by living 7 months in NY.  So 7/12 X $4415 and 7/12 x -$9610 would be the NY based amounts..

[driveafastercar]

Hi @DaveF1006 - I'm having a similar situation. TurboTax wants me to find $175 to allocate to New York City based on my federal adjustments however NONE of my federal adjustments were earned/gained while I was a resident of New York. ZERO.

I previewed my 1040 -- my adjustments to income (line 10) is $175 in charitable contributions. This is my total adjustments to income (line 10c). All charitable contributions were made while a resident of GA while I was making no money from a NY source and not living in NY.

I successfully indicated that the $175 was for charitable contributions and the total federal adjustment, $0 attributed to NYC, $0 attributed to Yonkers. Now it's asking me to Allocate Recomputed Federal AGI Adjustments equal to $175 and requiring me to attribute to Total New York Adjustments / NYC / Yonkers when all three of those should be $0. What do I do? $0/$0/$0 doesn't seem to be an option; anything else would be false. (Do I even need form IT-558?)

[DaveF1006]

Try going to your list of forms and see if you can delete IT-558 in your NYS section. If using Turbo Tax online, go to:

1. Tax tools>tools>delete a form
2. Delete IT 558.

if using the software, go to the forms mode. Select IT-558 in your list of forms in the left pane of your program. once it appears in the right pane, delete the form at the bottom of the page.

[driveafastercar]

@DaveF1006  So I don’t need it? I noticed some others in the community have errors with their NY return due to not having this form but I don’t know their circumstances.

[DaveF1006]

After reading this a little more closely, IT-558 is a form that decouples federal income from state income. In other words, NYS decided not to conform with some of the federal changes that were recently made so that certain adjustments allowed by the federal government are not allowed by NYS.

Ignore my previous statement. Put $175 for NYS and 0 for NYC and 0 for Yonkers. Let's see if this is what is required to move past this section. Please reply back in the thread if this works or not. 

[driveafastercar]

@DaveF1006 Tried that -- it then asks me which New York county I resided in while a nonresident of New York City. It offers the option, "If you resided outside of New York State, choose "Outside New York."" which I did. It allowed me to move forward - thank you!

Now have a different issue but I'll start a new thread for that, as it's unrelated. 😄