You can allocate these funds a few different ways depending on what is most reasonable for you.
One of your adjustments is self-employment tax deduction. You can allocate this using the same ratio you used to allocate the self-employment income.
The other adjustment is the student loan interest deduction.
- If you made all of your student loan payments while you were a resident of NY, you can allocate 100% of this portion of the adjustment to NY.
- If you made all of your student loan payments after you moved out of NY, you can allocate 0% of this portion of the adjustment to NY.
- You can look back at your payment history and can allocate the adjustments based on actual amount paid in each state.
- You can also prorate the expenses based on the percentage of time you spent in NY. Based on the dates entered in your TurboTax program, you spent about 10.5 months in NY. This works out to 87.5% - so you would multiply your student loan interest by 87.5% and that's the amount that would be allocated to NY.