Nonresident business allocation NYS

[Pelican25]

I have two W-2s: one from Utah and one from NYS. Do I need to file a Nonresident Business Allocation Schedule to allocate New York State income?

[LenaH]

No, you do not have to file Form IT-203-A. For your nonresident New York return, you would file Form IT-203-B (Nonresident and Part-Year Resident Income Allocation) and attach it to your Form IT-203. Form IT-203-B allocates New York sourced wages from a W-2 for a nonresident or part-year resident. 

As a non-resident of New York State, you are subject to New York State tax on income derived from New York State sources.

Due to the convenience of the employer rule, New York sourced income could actually be from another state as well. Under the New York “convenience of the employer” rule, the wages of an individual who is a resident of a state other than New York but who works for a New York-based employer, are considered to constitute New York source income unless, out of necessity, the employee is obligated to work outside of the state. In addition, if you are a nonresident whose primary office is in New York State, your days telecommuting are also considered days worked in NY state unless your employer has established a bona fide employer office at your telecommuting location.

In addition, please ensure that you've filled out the Personal Info section correctly:

1. With your return open, select My Info in the left-hand menu.
2. Then, on the Personal info summary screen, please make sure your resident state is listed under your name is correct.
3. Then, scroll down to Other State Income, and select Edit.
4. At the Did you make money in any other states? question, answer Yes, and make sure New York is selected from the drop-down.
5. Select Continue to return to your Personal info summary.
6. Click on State on the left-hand side. 
7. Add New York (if not already added). 
8. Follow the on-screen instructions. 

Your resident state will give you a credit of taxes paid to New York so that you are not double-taxed. Please complete your nonresident state return first so the credit flows to your resident return correctly.