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Turbox tax appears to be calculating my part year NY state return incorrectly, and uses my entire year salary (instead of the salary from when I lived in NY State). Any idea on how to fix this?

According to the NY state tax website, I should only be taxed NYS income tax during the time that I was a NYS resident. https://www.tax.ny.gov/pit/ads/it203_information.htm

When entering information in the NY state module, I answered what fraction of my total salary was earned while living in NYS. However, when I go to my summary for the NY State return it lists my entire federal adjusted gross income.

any ideas on how to address this? many thanks
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3 Replies
ChristieB
New Member

Turbox tax appears to be calculating my part year NY state return incorrectly, and uses my entire year salary (instead of the salary from when I lived in NY State). Any idea on how to fix this?

For New York Non-Resident returns, the summary page can be misleading, because it appears that your entire income is taxed. But, what is happening is that the amount labeled as Amount Taxed By New York is actually just being used to find the Starting Amount (your New York State Tax). 

Then, the Starting Amount is multiplied by your Income Factor, which should be the amount you earned in New York divided by your Federal Adjusted Gross Income. 

The resulting tax due is the amount of tax that you would normally pay in your tax bracket for all of your income, reduced so that you only have to pay for the percentage of that tax that you actually earned in New York.

As long as the correct amount has been allocated during the state interview portion as being your only source of New York income, you can feel confident that TurboTax is accurately calculating everything for you.

If this does not fully answer your question, kindly post additional details below. 

Turbox tax appears to be calculating my part year NY state return incorrectly, and uses my entire year salary (instead of the salary from when I lived in NY State). Any idea on how to fix this?

It appears Turbo Tax is calculating 5.97% of the NYS taxable income on line 37, instead of applying the tax table rule of finding the base tax and adding the excess calculation to that.

 

161,407 x 5.97 = 9636.00 versus 161,407 = 2093 plus 5.97% of excess over 107,650 (43K)

I calculate on paper 2093 + 7068.90 = 9161.90

This is an overpay variance of 474.10

 

What am I missing?

 

 

BillM223
Expert Alumni

Turbox tax appears to be calculating my part year NY state return incorrectly, and uses my entire year salary (instead of the salary from when I lived in NY State). Any idea on how to fix this?

"If your New York AGI amount on Form IT-203, line 32, is more than $107,650, see pages 58 through 63 to compute your New York State tax." New York IT-203 Instructions page 57

 

What is your NY AGI (line 32 on the IT-203)? Isn't it more than $107,650?

 

If so, which Tax Computation did you use starting on page 58?

 

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