This is correct. Even
if you were a resident of New York for 1 day, NY
uses your entire AGI to calculate your tax on NY income.
It
isn't, however, as bad as it appears. They calculate what your New
York tax would have been if you earned everything in NY, but then prorate that tax based on how much of your income was
earned while a NY resident.
For
example, if the NY tax on your entire 2015 income was $10,000 but only 30% was
earned as a NY resident, your NY tax would be 30% of $10,000 = 3,000.
Why
do they do this? So they can tax your NY income
at the highest possible tax rate, based on your entire AGI
While you may see "Amount taxed by New York" as your entire income minus "Standard deduction", as long as you allocate your annual income accurately in the NY state tax program, your NY tax liability will be calculated as as in the example above.
Sign In
