What does new york state income allocation mean?

[DanielV01]

It is a term that means "How much of your income was actually earned in NY"?  If you were a NY nonresident, all of your income can be reported to NY, because that is what the state requires of NY employers.  However, if not all of the income was actually earned inside of NY, you must use the allocation screens to state how much was earned in NY, and tell the method you used to determine that amount.  

If all of your income reported to NY is earned and therefore taxable in NY, you will not need to allocate.  

[emwatz]

Hi! Does this mean that you would put "0" in the New York Portion box?

[jcangemi11]

Which method of allocating your nonresident, NY sourced income  (i.e. - straight percentage vs. days worked) is recommended by TurboTax?  I note that the instructions for NY Nonresident Form IT203 state that Form IT203B, Schedule A must be utilized and attached to your return or your return processing will be delayed.  This suggests NY State prefers the total days allocation method instead of a simple percentage method.  Using the percentage method yields a better tax result for me, but I am concerned using this method may cause issues.  Please advise.

[MarilynG1]

@jcangemi11 To generate Form IT203B, use the number of days allocation method.

New York will use number of days worked divided by 366 to arrive at a decimal equivalent factor to apply to both wages and taxes.

The % method will not generate the required IT203B. 

Click this link for more discussion on Allocation of New York Non-Resident Income.