Non resident NYC employee side income and form NYC 1127

[cindy11223]

Hi. I'm a resident of NJ who has a side business that I conduct on the weekends on my own time--mowing lawns/walking dogs, etc. Is that side income unrelated to my NYC government employment also subject to the NYC 1127 waiver tax? In other words, when calculating what I owe on the 1127 tax form, is my income from another state unrelated to my City employment subject to the tax? I ask because Turbo Tax has lumped my non City income earned in NJ (from my self employment business) with my NYC earned income. Thank you!

[AmyC]

No, you can see the 2020 NYC-1127 Form is all about the NY income. The PA should not be included.

You need to review your NY state return and make sure that you have marked your PA income as not NY income.

[cindy11223]

Thank you! I did allocate 100% of the side business income as coming all from PA but for some reason, turbo tax counts it all on the 1127 form. Im not even sure if NYS is counting it all. It probably is even though I've allocated 100% to PA. It's a fairly large amount (thousands more in taxes owed) and makes a big difference.

[AmyC]

Please see How do I preview my TurboTax Online return before filing? and check your NY return. I think it your business didn't get marked as not NY.

1. Go back to NY.
2. Edit.
3. Continue until you see New York Income Allocation, click NO.
4. It may ask about wages for you (I don't know if you are married)
5. When it gets to Your Business and Farm Summary, click Edit.
6. It asks about Your Business Income, select No NY state income,
7. continue.
8. Done.

[cindy11223]

Thank you! Let me check!

[cindy11223]

Still not working. Keeps showing my income from the other state added into the NYC 1127 income. I've even taken steps to delete the income from the other state completely and it still shows up on the 1127. So frustrating.

[ErnieS0]

NYC-1127 will pick up the income amount from NYS IT-203 line 36. The way to remove your side income from NYC-1127 is to remove the side income from your state return.

• Go to the New York in TurboTax Online.
• Continue until you come to New York Income Allocation.
• Say NO to Were all of your wages and/or self-employment income earned in New York State?
• Say Yes to Wages and choose 100% New York State Income for your City job.
• You will see Business and Farm Summary. Edit.
• Under [Your] Business Income select No New York State Income.​​​​​​​