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I moved to NY in September. Under "Amount we start with for NY" my entire income appears, even though most of it was earned outside of NY. Is this correct?

Additionally under "Amount taxed by New York" is my entire income minus "Standard deduction."
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ToddL
New Member

I moved to NY in September. Under "Amount we start with for NY" my entire income appears, even though most of it was earned outside of NY. Is this correct?

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. 

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1 Reply
ToddL
New Member

I moved to NY in September. Under "Amount we start with for NY" my entire income appears, even though most of it was earned outside of NY. Is this correct?

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. 

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