Anyone seeing issues with line 39 calc in new york...
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stephen_peet
New Member

Anyone seeing issues with line 39 calc in new york state returns (IT-2105)? appears to apply marginal tax rate to all of line 38 rather than use brackets

 
4 Replies
LenaH
Employee Tax Expert

Anyone seeing issues with line 39 calc in new york state returns (IT-2105)? appears to apply marginal tax rate to all of line 38 rather than use brackets

Certain rates within the New York State tax rate schedules have been updated for 2021. The estimated are calculated based on the tax rate schedules shown on Page 8 of the Form IT-2105 Instructions

 

 

If you need to edit your IT-2105, you can do so in TurboTax. You can answer questions based on what you think your 2021 income will be and adjust estimates accordingly. 

 

As you are going through your NYS return, you will get to the screen titled Additional Tax Situations. Click Start on Review Estimates Calculated

 

 

Then, you can edit whichever estimated tax payment for 2021 that you would like.

stephen_peet
New Member

Anyone seeing issues with line 39 calc in new york state returns (IT-2105)? appears to apply marginal tax rate to all of line 38 rather than use brackets

My query relates to 2020 ny tax return. i believe turbotax calculates tax payable at line 39 incorrectly- eg say line 38 (taxable income) is $500k. turbotax is calculating line 39 (nys tax payable) as $500k x 6.85% instead of $19674 + ($500k - $323.2k) x 6.85%. This overstates the tax payable.

stephen_peet
New Member

Anyone seeing issues with line 39 calc in new york state returns (IT-2105)? appears to apply marginal tax rate to all of line 38 rather than use brackets

ive managed to answer my own question. turbotax calc is correct. nys tax payable calcs move to flat % of taxable income at a certain income level within the tax brackets. 

LenaH
Employee Tax Expert

Anyone seeing issues with line 39 calc in new york state returns (IT-2105)? appears to apply marginal tax rate to all of line 38 rather than use brackets

Yes, that is correct. NYS uses a different calculation for New York adjusted gross income greater than $107,650.

 

Sorry for the miscommunication. You mentioned IT-2105 in your question, which is the estimated tax forms for New York State. 

 

@stephen_peet

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