On my NYS state tax return summary:
Amount Taxed by New York= ~$1.2 million (a)
Turbotax Calculates my New York Taxes owed as: $115.8k (9.65% * (a))
My read of New York tax tables shows the amount should be $83.229k ($71.413k + 9.65% of the income above $1.07755 million)
Does anyone else have this issue. I have not had this issue in prior years.
I'd like to look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.
If you're using TurboTax Online:
Once you're logged in to your account,
- on the left hand panel, click on Tax Tools and then choose Tools
- on the pop up window, select Share my file with Agent
- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.
- click okay and you'll get another message with a token
If you're using TurboTax Desktop:
Please reply to this message with your token so that we can further assist you. Let us know all other states that are included on the return.
Yes, you would need to post the token here. There'd be no personal or sensitive data included in the tax file, and only certain TurboTax employees have access to pull the file.
Thank you for sending your token.
Due to your income level, you're subject to the state's "taxable benefit recapture" law. This law is New York's way to recoup some of the tax benefits from higher-income taxpayers.
As you have seen, New York has tax brackets with progressively higher rates as your income rises. Normally, everyone benefits from the lower rates on the lower bands of income. This recapture provision essentially removes that benefit for higher-income taxpayers by adding an extra amount to their tax bill.
This effectively creates a flat tax rate for high-income taxpayers.