Cannot allocate NY state taxes

[Anonymous]

Hi all, I’ve moved from NY to WA last year, have two W2s, and I’m trying to allocate the correct wages to my NY tax return as part-time resident.

However, TurboTax does not allow me to do this. It doesn’t matter whether I try to allocate by days, by percentage, or whether I click “do not allocate this employer” - TurboTax always uses the full amount from both my W2s for NY. When I click continue, the values do not change at all. Is this a bug or am I doing something wrong? I’m using TurboTax Online.

Detailed Steps:
- I’m on the State Form W-2 Summary page
- It says: “Here's what we have so far. You must edit (change) each Form W-2 to allocate your New York State earnings.”
- When I click edit, “Don't allocate this employer” (or any other option), and then continue, I get back to the overview page but the values have not changed.

[MarilynG1]

In trying to duplicate your issue, on the W-2 summary page, under Edit, I changed the amount from 60K to 30K.  On the next screen, 'Allocate 100% to New York' was already indicated, so I left that, and the next screen showed W-2 summary again, with an amount of 30K, which is correct. 

Otherwise, it sounds like you may have some data hung, from the error you're getting.  If you're using TurboTax Online, try closing the program, clear your Cache and Cookies, and return to the NY interview.  

You could try a different browser, and make sure no other programs are running in the background (like Email). 

Here's more info on Allocating Income for a Part-Year Resident. 

[Edited 2/23/2024 | 7:48 pm]

[Anonymous]

Thanks for your reply.

I think I misunderstood how this is supposed to be working. Apparently NY requires by law to report the full year income but then uses a formula based on days in the state to allocate the correct part to it. I figured this out now in TurboTax but the UI was confusing. There is one screen where you are supposed to be able to allocate income but nothing happens (see above). Afterwards TurboTax asks me to enter my number of days in the state etc. and only then the allocated wages eventually get updated.

Some more info on this here: https://www.reddit.com/r/tax/s/p0Gbd5Sc7B