Allocate New York State adjustments

[maroth96]

In 2023, I was a part-year Yonkers resident. When preparing the NY state return I came to a screen titled "Allocate New York State Adjustments". The text says: "Because your residence changed during 2023 you must allocate your New York State adjustments of $X based on the time you spent as a resident of New York City or Yonkers... Your New York State Adjustments below must equal $X." This number doesn't look familiar to me. Where can I find out how this number was calculated?

[LenaH]

If you don't recognize the amount on the screen, Allocate New York State Adjustments, it is likely a combination of numbers from your IT-201 or IT-203. The numbers you are looking for is a combination of numbers that equal $XX (the number populating for you on the screen). These items do not have their own line item on the IT-360.1, which is the NY form for changes in city residency status.

The adjustments are listed here. The most common adjustments I see are: 529 plan deductions, 414(h) retirement contributions, interest income on tax exempt bonds, and pension and income adjustments. 

If you need further assistance, I can look at the numbers on your return and provide you with the combination of items that equal that adjustment. 

To do this, you would need to send me a token. This is a file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

The instructions for TurboTax Download:

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information. 

Please tag me in the response with the token if you are unable to get through this step and would like additional assistance. 

[maroth96]

@LenaHCould you take a look at my return? My token number is 1201142.

[LenaH]

Thank you for providing the token. After looking at your return, your adjustment was from your Health Savings Account (HSA) deduction. This was deducted on your 1040, Line 10. These were contributions you personally made in 2023.

This amount flows to Line 18 of your IT-203, which lists all the federal adjustments to income. I did notice that your allocated the full amount of your HSA to Yonkers on the NY Resident Deductions screen. 

Therefore, on the Allocate Federal Adjustments to Income screen, enter the following:

• Description: Health Savings Account Deduction
• Total Federal Adjustments: Leave in the full amount you had in there already labeled "XXX".
• Yonkers Resident Portion: Leave in the full amount you had in there already labeled "XXX".

If you have any further questions, please let me know and I can assist you further. 

@maroth96 

[maroth96]

I was referring to the 'Allocate New York State Adjustments' screen. The specific number to allocate is $13,587. Could you help me figure out what numbers add up to this figure?

@LenaH 

[LenaH · Accepted solution]

The 13,587 is the California state income tax withheld on your W-2 and should not be entered as an adjustment on your NYS return. It was populating as a PTET (pass through entity tax) adjustment because 13,587 was entered as taxes paid by an entity in the New York screens. 

Please take the following steps to remove this and correct your return:

1. Enter your New York State return.
2. Continue through your return until you see the screen, Take a look at New York credit and taxes.
3. Click Start next to Taxes Paid to Another State.
4. Click Edit next to California.
5. Enter 11,911 on the page Tax Computed on Your California Return. I pulled this from the Form 540. 
6. On the screen, Enter California Information, take the amount out of California tax paid on your behalf by an entity. This clears out this amount from needing an adjustment on the NYS return. 
7. On the same screen, enter 11,911 as the amount of California tax paid by you.
8. On the screen Enter California Information, enter 13,587 as total tax withheld and 1,676 as refund due to you on the California return. Keep balance due at 0.

If you have any further questions, please let me know. 

@maroth96 

[maroth96]

I've updated the return.

I am still getting one issue on form IT-112-R (CA):

24 Enter the amount of income tax imposed on this year's return for the other state or local government that was paid by the:

24 a Taxpayer 0

24 b Entity on behalf of the taxpayer 13,587.

What number do I put for 24 a? I thought that 0 is correct because I didn't make any estimated tax payments. But this number isn't accepted.

[maroth96]

@LenaH 

[LenaH]

The amount of income tax imposed by California is $11,911, of which $0 was paid by an entity on your behalf. Please input the $11,911 on Line 24a. All of the $11,911 was paid by you through income tax withholding. Please see screenshot below.

@maroth96 

[rahulbmv]

Hello, I am seeing the same problem where I am asked to allocate -2xxx.yy $. My token number is 1231585. Please help!

cc: @LenaH 

[LenaH]

Can you please provide your token again? There is no New York return on this sanitized copy. @rahulbmv 

[ironchefz05]

Hi @LenaH, I'm having a similar issue. It says I "must allocate [my] NY State Adjustments of $1978," but I have no idea how to allocate it. My token number is 1264921. Will you kindly look at my case? Thanks so much! 

[LenaH]

The $1,978 is the amount ‌of your 414(h) retirement contributions. You entered this on Line 14 of your second W-2 entry, which you marked as NY IRC 414(h) subject to NY tax.  

If that is correct, please enter 414(h) retirement contributions as the description for Line 19 on your IT-360.1.  

Then, enter the amount in Column A that represents the amount of that retirement contribution made while a NY resident. If the full amount was contributed while living in NY, then enter $1,978 in column A. Assuming you lived in NYC the entire time you lived in NY, you would enter the same amount in Column B. 

Column B represents the amount of that contribution that was made when you were a NYC resident. For example, if you made those retirement contributions while a NYC resident, then enter the entire $1,978 in column B. 

See attached screenshot. If you need additional assistance, please tag me so I will be promptly notified of your post. 

@ironchefz05 

[orlinda5]

Hi 

I got this message when filing.  I moved out of NYC last June 2024 to PA.  It says to list the description and amount as $907 but I don't know where that came from and what description should I put?

Also, I only lived in NYC from Jan -June 2024 about 5 months then moved to another state.

What should I write in this section?

Thanks!

Orlinda

Allocate New York State Adjustments

Because your residence changed during 2024, you must allocate your New York State Adjustments of $907 based on the time you spent as a resident of New York City or Yonkers. Complete the Yonkers column if you were a part-year Yonkers resident.

Your New York State Adjustments below must equal $907.

[AmyC]

Enter a description of the adjustments based on what it is. Review your federal return to determine what caused your adjustments. Examples of adjustments include half of the self-employment taxes you pay; self-employed health insurance premiums; contributions to certain retirement accounts (such as a traditional IRA); student loan interest paid; educator expenses, etc. 

From the instructions:

Line 18: Total federal adjustments to income

Federal amount column

Enter the total adjustments to income you reported on your federal return. Write each adjustment and its amount in the Identify area on line 18. If you need more room, submit a list on a separate sheet of paper showing each adjustment and its amount.

If you did not have to file a federal return, claim the same adjustments to income that you would have claimed for federal income tax purposes.

New York State amount column

Enter that part of the federal amount that represents adjustments related to income you received as a nonresident that was derived from or connected with New York State sources.

Part-year residents

Also add that part of the federal adjustment deductible while you were a New York State resident.

Allocate to New York State any other adjustment to income that relates to wage or salary income earned partly in New York State, or to income from a business carried on both in and out of New York State, on the same basis as the income to which it relates. Some of these adjustments include IRA deduction, one-half of self-employment tax, and self-employed SEP, SIMPLE, and qualified plans.

@orlinda5