Married Filing Jointly Both Live in NJ, one works in NJ one in NY

[Elindel]

Good Morning All,

 I am working on TurboTax online and I am confused about how to handle my state portion.

 I work remotely from NJ but all of my taxes taken out we're from NY

 My wife works in NJ and all her taxes we're taken from NJ

 I am aware that I am receiving a credit from NY to make up for NJ.

 My concern is what to do when my wife's salary, when none of her taxes we're taken from NY are showing up under that return. The online version doesn't allow me to go into forms mode and I cannot for the life understand how to fill out the IT-203-A form which TT has shown me a couple times. Is there an easy way to remove my wife's salary from NY?

[MaryK4]

You cannot remove your wife's income from your return.  If you are filing your New York state tax jointly, you must include all income on the return.  Because you are nonresidents, your wife's New Jersey income is not taxed.  On the New York summary screen, you will see that New York uses a New York Income Factor- which is the percentage of the total income that the tax is applied to.  

[Elindel]

Hello,

 The math doesn't seem to be adding up for me, do you know what the exact equation is?

Amount Start With = 177,429

Standard Deduction =  -16,050

Dependent EX - 3,000

Amount Taxed by NY - 158,379

Start Amount 8,711

 NY Salary = 82,301.32

 NJ Salary = 95,122.50

 NY income Factor = ?

[MaryK4]

The Income Factor looks at the percentage of income earned in New York State (82301) divided by Federal (177424) = .4638

The starting amount is the tax that would be due on the Amount Taxes by New York.  

@Elindel 

[Elindel]

Hello,

 Thank you for that information! Is there a reason the calculation is based off of the original AGI and not the 158k which is the taxable NY income?

[KeshaH]

Under New York tax law, tax for nonresidents and part-year residents is calculated based on all income as if you are a full year resident. The tax is then prorated based on how much income was actually earned in the state. 

For more information, see the instructions to Form IT-203.