2008309
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

msomara81
New Member

I worked half yr in NY (Res) and half yr in SC(Res). NY income is copying over from federal to include SC income. I have reentered and reviewed twice. How can I fix that?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

4 Replies
TomD8
Level 15

I worked half yr in NY (Res) and half yr in SC(Res). NY income is copying over from federal to include SC income. I have reentered and reviewed twice. How can I fix that?

New York uses your total income to determine your tax rate, but then it applies that rate only to your NY income.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
ToddL99
Expert Alumni
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

I worked half yr in NY (Res) and half yr in SC(Res). NY income is copying over from federal to include SC income. I have reentered and reviewed twice. How can I fix that?

There probably isn't anything that needs to be fixed.

 

What you are seeing is accurate, but  NYS is not taxing the income you made after you became a resident of SC. 

 

Your total 2020 pay appears in the NY forms, summaries and interviews because NY uses your entire AGI to calculate your tax on NY income.  They do this  even if you were a resident of New York for 1 day. 

 

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 2020 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. 

msomara81
New Member

I worked half yr in NY (Res) and half yr in SC(Res). NY income is copying over from federal to include SC income. I have reentered and reviewed twice. How can I fix that?

Thank you for your response. Just so I'm sure - NY uses my AGI, my deductions are applied to the AGI, and I am taxed at the remaining balance, which is more than I actually made in NY. Which also makes it so I made less money than last year, but am paying more in taxes. 

AmyC
Expert Alumni

I worked half yr in NY (Res) and half yr in SC(Res). NY income is copying over from federal to include SC income. I have reentered and reviewed twice. How can I fix that?

NY determines the tax on your entire income for the year. Then prorates it based on the percentage earned in NY.  Your tax rate may have increased.

 

For example: say you made $70,000 in 2019, taxed around 6%

  • 2020, earn $85,000. Income up, tax bracket goes up
  • taxed at 6.41% -519.34 = $4929.16 total NY tax liability
  • But only $60,000 earned in NY.
  • Prorate $60k/$85k is 70.6%
  • Your tax would be  the prorated 70.6% of the $4929.16 = $3,479 NY tax

Depending on your numbers, you could have made less money and paying more in taxes. NY taxes up to 8.82%.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question