New York & Pennsylvania State Income Allocation

[NoobQuant]

Hello,

I worked in Pennsylvania until mid-June, when I relocated to New York. I continued working for the same Pennsylvania-based company and received 3 W-2s.

• My Pennsylvania state wages (box 16) are listed as roughly 50% of my total wages.
• My Pennsylvania local wages (box 18) roughly match my state wages ~50%.
• New York state wages are listed as 100% of my total wages.
• New York local wages are listed as roughly 50% of my total wages

I'm concerned that I am going to double pay tax on 50% of my income, as I only lived in New York for half of the year. My W-2 tells me I'm to declare that I made 100% of my income there and 50% in Pennsylvania. This seems to conflict when TT  asks me to allocate my income between states, but I wanted to verify that this wasn't a feature unique to New York before i questioned the validity of my W-2.

[DanielV01 · Accepted solution]

New York requires payroll companies to report 100% of your income to New York, and then you use the New York allocation screens to report the amount that was actually earned there.  The easiest method will be the percentage method.  Since your NY local tax (Yonkers or NYC?) should also represent your NY state income, divide this amount by your overall percentage and enter that as a percentage in the percentage allocation screen without the percentage symbol.  For example, .5231 (52.31%) will be entered as 52.31  This will allocate the correct income to New York to figure out the correct tax.

[NoobQuant]

Thanks again for the quick & detailed response, that's what I ended up keying in but I was too uncertain to move forward without confirmation. With your guidance I can continue on.

[DanielV01]

You're welcome.