Allocate New York State adjustments

[saradraddy]

Hi! This is my. token number: 1298077. Having a lot of trouble with this one since I had a W2 for one state and 1099-NEC for another (I moved states and jobs in September). 

[DianeW777]

The answer assumes you need to know how to allocate the income to New York (NY) and that you moved to NY in September. Since the self employment is for NY only, enter the self employment tax deduction the same in the NY box as the federal amount. Likewise you should enter the same figure on the screen titled: Allocate Federal Adjustments to Income for NYC (under NYC and Yonkers Information > Part-year additional allocations).

The NY tax is calculated by using the tax on all of the income, then only the NY income divided by all of your federal income to arrive at a percentage. You will see the tax on line 50, Form 203, page 3.

Massachusetts (MA) return has the correct income taxed and none of the self employment from 1099-NEC. MA calculates a percentage based on the number of days in MA against the whole year. On the screen Income Earned While Not a Resident should be zero. This is currently reducing your wages on the MA return. 

Your business income has been accurately reflected by indicating it was not earned while a resident.

Once these changes are made you are good to go.

@saradraddy