Incorrect NY State Tax Calculation

Forum|Forum|5 years ago
February 19, 2021
10 replies
116 views

I was trying to do NYS tax, but I found the calculation wrong for line 39. It applied the flat tax rate of my tax bucket to line 38 rather than doing the calculation found on page 57 of IT-201 instruction.

I also found the same error in the enhanced IT-201 found on ny.gov.

I.e. if my taxable income is 300k, it shows NYS tax to be 300k*6,85%=20550 rather than (300k-215400)*6.85%+13288=19083.

Could someone confirm this for me? Thank you

Best answer by leid

Yes, I finally found that TurboTax's calculation was right, and I was wrong.

I missed the following on the NYS document:

"If your New York AGI amount on Form IT-201, line 33, is more than $107,650, see
pages 58, 59, and 60 to compute your New York State tax."

My mistake was that I just used the Taxable amount to figure out the tax. But the rule ask to consider the NYS AGI also, and that would add the $202 to the tax amount I have to pay.

leid

Level 2

I found a similar issue. My NY State taxable income is $110,830. According to the tax table, the calculation should be:

$2093 + ($110830 - 43000) * 6.09% = $6224

However, TurboTax gave me the tax amount of $6,426. That was $202 more than it should be.

What happen with the software ( I use the Premier version)?

leidAnswer

Level 2

Yes, I finally found that TurboTax's calculation was right, and I was wrong.

I missed the following on the NYS document:

"If your New York AGI amount on Form IT-201, line 33, is more than $107,650, see
pages 58, 59, and 60 to compute your New York State tax."

My mistake was that I just used the Taxable amount to figure out the tax. But the rule ask to consider the NYS AGI also, and that would add the $202 to the tax amount I have to pay.

BillM223

Level 15

@Robert B D

Did leid's answer make sense to you? Do you agree that TurboTax is calculating the NYS tax correctly?

@leid - thanks for coming back and telling us!

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