Allocate New York State adjustments

[zhoudun73]

I was a resident of New York City for the first 6 months of 2021. When preparing the NY state return (after preparing the federal) I came to an entry that said "Because your residence changed during 2021 you must allocate your New York State adjustments of -$10,000 based on the time you spent as a resident of New York City or Yonkers (I am not a Yonkers resident). Below that statement are four empty "Description" boxes and then corresponding amount boxes adjacent to each. It also says that "Your New York State adjustments must equal -$10,000. " Question 1: Where did the amount -10,000 come from? I don't know how to describe or how much to allocate to each item unless I know the source and I cannot find that amount or any accumulation items that equal that amount on any forms. Question 2; Is the amount shown somehow generated in software because I previously filled in the date I moved to NY? Please advise how to fill this out.

[ErnieS0]

Your New York City adjustments came from your federal return and yes, they were generated because you are a part-year NYC resident.

Does $10,000 look familiar? Adjustments include items such as teacher expenses, IRA and self-employed retirement, alimony, and student loan interest.

You can preview Form 1040 to look for your adjustments.
 

1. Click Tax Tools in the left column
2. Click Tools below that
3. In the center column, select View Tax Summary
4. In the left column click Preview my 1040
5. You will see Federal 1040
6. Go to Schedule 1. That where your adjustments are
7. When you are done, click Back in the left column

NYC residents pay an additional tax that’s added to the New York state return. Since you lived in NYC for part of the year, you have to split your income and adjustments to show the amounts for your resident period.

[zhoudun73]

Thanks for your reply, but I am still confused with this allocation.

I lived in New York City from Jan-Jun 2021, and worked for a company A in New York. W2 salary from company A is 40,000. and I have a capital gain10,000.

Then I moved to Wisconsin and live from Jul-Dec 2021, and worked for a company B in Wisconsin. W2 salary from company B is 60,000.

How shall fill the table below? It will be allocated by time or by income?

[LenaH]

This ($10,000) adjustment is your 529 contribution that you questioned in the other post. Since you made the contribution while living in NYC (April 2021), you must enter that in the NYC resident portion column as well. 

Therefore, the fields on the screen should contain the following information: 

• DESCRIPTION: 529 Contribution
• TOTAL NYS ADJUSTMENTS: (10,000)
• NYC RESIDENT PORTION: (10,000)

@zhoudun73

[zhoudun73]

Thank you so much! Very helpful!

one more question. Please see the screenshot above. It shows “ your New York State adjustment must equal -10000”, please note the negative sign “-“.

shall I input “-10000” or “10000”?

I tried both, they will give different results 

[LenaH]

Please enter -10,000 for the total New York adjustment and the NYC resident portion. This is a deduction from your NYS income. 

@zhoudun73