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I changed jobs and moved to NY. The "Amount of taxed by New York" is not correct. I filled in my income amounts for the 2 states correctly, but it is wrong on review.

 
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Accepted Solutions
KarenJ
Intuit Alumni

I changed jobs and moved to NY. The "Amount of taxed by New York" is not correct. I filled in my income amounts for the 2 states correctly, but it is wrong on review.

NY tax calculation for part year residents makes it look like they are taxing you on your entire year's income.  But it only looks that way.

Please note: the way that the NY state tax return works is that NY looks at all of your income from all sources and generates a tax on all this income. When NY is determining the actual NY state taxes owed, NY multiples the total NY taxes on all income by the percentage of NY source income over all source income.

So if your income from all sources is $10,000 but your NY source income is $8,000, NY will calculate the NY state tax on $10,000 then multiply the total state taxes generated by 80% ($8,000/$10,000). So even though you all your income is being reported on your NY state tax return, you are only being taxed on the NY source portion of your total income.


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1 Reply
KarenJ
Intuit Alumni

I changed jobs and moved to NY. The "Amount of taxed by New York" is not correct. I filled in my income amounts for the 2 states correctly, but it is wrong on review.

NY tax calculation for part year residents makes it look like they are taxing you on your entire year's income.  But it only looks that way.

Please note: the way that the NY state tax return works is that NY looks at all of your income from all sources and generates a tax on all this income. When NY is determining the actual NY state taxes owed, NY multiples the total NY taxes on all income by the percentage of NY source income over all source income.

So if your income from all sources is $10,000 but your NY source income is $8,000, NY will calculate the NY state tax on $10,000 then multiply the total state taxes generated by 80% ($8,000/$10,000). So even though you all your income is being reported on your NY state tax return, you are only being taxed on the NY source portion of your total income.


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