Error on NY IT-306.1, Line 6, Column C

[sanchito]

I believe there is a bug in NY Form IT-306.1 (Change of City Resident Status). The state review returns the following error, which is incorrect:

• Line 6c is greater than the amount of Business income allocated to New York State on IT-203. Edit amounts on the Part-Year Resident/Nonresident Allocation Worksheet or City Wage/Self-Employment Income Allocation Worksheet as needed.

Our total business income is negative (a loss), and is shown on Line 6 in column A (Federal income and adjustments) and in column B (Amount of Column A for New York City resident period). Column C (Amount of Column A for Yonkers resident period) is blank, because we are not Yonkers residents. It seems that the program is interpreting the blank line as a zero, which of course is a greater number than our negative business income. However, the program should disregard the blank lines in Column C, because we are not Yonkers residents.

Please note that box (A) is marked at the top of the form, indicating a New York City change of residence only.

[LenaH]

If you are still getting an error, it would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue.

You can send us a “diagnostic” 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.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

[sanchito]

My token number is 925909.

Thanks for your help.

[sanchito]

Checking in to see if this issue is being investigated. Please advise.

Thanks,

Alan

[sanchito]

Forgot to @ you, @LenaH . I wanted to know if my issue is being looked at.

[LenaH]

We are investigating this issue. Thank you for your patience.

@sanchito

[LenaH]

This issue was investigated and they found that if you change the amounts on your Part-Year Resident/Non-Resident Allocation Worksheet, the error will be cleared. This seems to be an issue that could be corrected in TurboTax Desktop, but not in TurboTax Online. You have the option to switch to TurboTax Desktop if you would like. Please see How do I switch from TurboTax Online to TurboTax CD/Download? for additional information. 

To clear the error message noted above in TurboTax Desktop, you need to make modifications to their Part-Year Resident/Non-Resident Allocation Worksheet as follows:

1. Column D, line 6, currently reflects a loss of 929.  Change this amount to 0 and the error message will be cleared.

1. After changing Column D, line 6 to 0, you will notice that the red exclamation mark next to Form IT-306.1 is absent, thus indicating that the error message no longer exists. 

It should be noted that your self-employment loss of $929 was realized from work performed in NYS.  Column D, and Column C, on the Part-Year Resident/Non-Resident Allocation Worksheet both reference income during the period of non-residency.  Thus, line 6 for both Columns D, and C, should be 0; however, if Column C were to be changed to 0, the error message noted above will continue to be present.

@sanchito

[sanchito]

@LenaH 

I should have mentioned that I am already using TurboTax Desktop.

I am unable to clear the error in TurboTax Desktop, even though I have made corrections. The numbers are now as follows:

Part-Year Resident/Non-Resident Allocation Worksheet

Line 6, Column A: calculated value: -929 (as before)

Line 6, Column B: changed to -929 (was 0)

Line 6, Column D: changed to 0 (was -929)

Line 6, Column C: automatically recalculated to 0 (was -929)

Form IT-306.1

Line 6, Columns A and B: calculated value: -929 (as before)

Line 6, Column C: no entry; highlighted as an error

The only way I can find to make the error go away is to set both Columns B and D on the allocation worksheet to 0, but that would mean that the business loss would not be included in my NYS/NYC income, and I would end up paying more tax than I should.

The error message is regarding a Line 6 Column C on Form IT-360.1, which is for Yonkers resident income. As I am not a Yonkers resident, the program really shouldn't be error-checking that line at all.

I have uploaded a new diagnostic file reflecting my latest changes. The token number is 949234.

Thanks,

Alan

[sanchito]

I just to report that the latest desktop program updates have corrected this issue. Thanks.