NY non resident

[tom_kozak61]

I am a full time resident of PA and worked in NY until November 2020 when I got laid off. I collected NY unemployment in 2021. I am filing a 2021 NY non resident tax form for the unemployment compensation only. However turbo tax says that NY includes all income from dividends interest and cap gains. I am paying for that income on my PA state tax return. Why would I also have to pay NY? 

[FangxiaL]

If none of the interest, dividends, and capital gains is from a business or occupation carried on in New York State, change the numbers to 0 instead.

[kozak61]

I did zero them out but it seems like the form for NY taxes a percent of your federal AGI even though I only received unemployment. I cashed in a lot of cap gains so now I have to pay tax on that 3 times..Federal, PA and NY!!!

[ErnieS0]

Yes. New York taxes a percentage of federal AGI after NY adjustments. This is "New York adjusted gross income."

New York uses your total income to calculate the tax rate for part-year and nonresidents so your interest, dividends and capital gains are included in the calculation for the tax rate, but not in the actual tax.

For example, if you earned $100,000 total and $30,000 of unemployment in NY, your tax rate would be based on $100,000, not $30,000.

Say the NY tax on $100,000 is $10,000. Then your tax would be 30% ($30,000/$100,000) of $10,000 or $3,000.

Your tax return is correct if the amount in the right column of IT-203 only includes NY income. The computation and allocation appears on page 3 on lines 45 and 46.

The base tax which is the on all your income if you lived in NY all year is on line 44.

The actual amount you are being taxed on is on line 45.

[tom_kozak61]

Yes unfortunately this resolved my issue. I also want to note that what turbo tax is suggesting in its program is different from what is correct. I would like to suggest that someone at turbo tax look into this so other people don’t get penalized like I did.