how do I subtract investment earnings from NY taxes since they were earned in NJ?

[Reneebberger]

I live in NJ and work in NY

[MaryK4]

Since you are a nonresident of New York, investment income such as interest, dividends, and capital gains from personal stocks or bonds is generally not taxable by New York.  

During the NY state interview, you will reach a section for Income Allocation.  New York defines "source income" for nonresidents primarily as wages earned while physically working in NY or income from NY real estate.  When TurboTax asks for the "New York State Amount" for these items, enter $0 if they are personal investments and not connected to a NY business.

[Reneebberger]

Hi Mary.  I got that far Putting zero for the New York amountbut it didn’t translate into a subtraction from my NY earnings.  Is there a glitch in the TurboTax application?

[MaryK4]

It is possible that you are seeing the New York calculation.  New York nonresident tax is calculated by determining the tax rate on your total federal adjusted gross income (AGI) and applying it only to your New York-source income. You will see your total income and taxable income on the Form IT-203, which TurboTax will calculate for you.  If you do not see this, please feel free to post again. @Reneebberger 

Here is an Example Calculation:
Total Income: $100,000 (Federal AGI)
NY Source Income: $30,000 (Earned in NY)
Taxable Percentage: $30,000 / $100,000 = 30%
Base Tax: NY calculates tax on $100,000, e.g., $10,000.
Final Tax: $10,000 * 30% = $3,000 (plus applicable NYC/Yonkers taxes

[Reneebberger]

Thank you. Your answer made sense and I was able to file my taxes