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posted May 12, 2021 9:37:50 AM

New York State

My federal income was $74k.  State of NY income was $31k.  I worked in NJ, but lived in NYC for 5 months.  Why is my NY taxable income $66k?  Does that sound right?

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1 Replies
Employee Tax Expert
May 12, 2021 10:59:49 AM

Yes. NYS uses the New York Income Factor when determining your tax amount. They start with all of your taxable income and tax it at the NYS rate. Then, the state uses the allocated income entered to determine your NYS Income Factor (what percentage of your income was earned in NYS). Lastly, they multiple your total tax by the NY Income Factor to determine your NYS tax. 

 

Your NYS taxable income could be $66k, but your income factor should be around .4167. Therefore, the calculation of your taxes would be based on the $66k. Those taxes would then get multiplied by your income factor (.4167) to get to your total NYS tax. 

 

You should see a page at the end of your NYS return that shows the calculation of taxes as I attached below.