Part-Year NY Resident Credit

[KenDoesHisTaxes]

TLDR: Part-year NY resident attempting to claim resident tax for pass through entity withholding in Illinois. In completing New York form IT-112-R, Turbotax is populating column A ("New York Total" in TurboTax speak) with federal (combined, full year) figures instead of my part-year New York figures. Is there a fix? I've already allocated my income and everything else in this return works fine.

Longer version:

I have an S-Corp based in Illinois that paid distributions to me this year while I was first an Illinois resident and then a New York resident (presently NY resident). Illinois imposes pass through withholding on the S-corp for non-residents, which I paid, but my understanding was I'd be able to recoup the New York portion of that via the Resident credit (form IT-112-R).

The instructions for IT-112-R specifically say "Residents and part-year residents: Do not enter in column A or B any income that is taxable to the other taxing authority but not taxable to New York State." This makes sense because I just want a credit in New York for the share of income New York wants to tax that has already been taxed in Illinois.

However, when I go to the TurboTax module for New York's credit for "Taxes Paid to Another State", it automatically populates column A with the combined (Federal) amounts, not the portion I allocated to New York. Any attempt to fiddle with the numbers I can control (column B) has its pros and cons and either way, the form just comes out wrong.

Any ideas? 

[RobertB4444]

It's correct.  New York taxes all of your income.  That's why the Illinois income is giving you a credit.  New York is taxing that too.

@KenDoesHisTaxes 

[KenDoesHisTaxes]

Thanks. What does this mean, in the instructions for IT-112-R: "Residents and part-year residents: Do not enter in column A or B any income that is taxable to the other taxing authority but not taxable to New York State." ?

You're saying all income is taxable to New York State and thus this instruction is superfluous?

[RobertB4444]

No, I should have spoken more specifically.  New York taxes all of your income that you have earned.  There are exceptions to what New York will tax.  There just aren't very many of them if you are a part year resident.  If you were a non-resident then you would put anything that was not income earned from a New York source in that box.  The return you are doing is for both part-year and non-residents so there are some items that don't apply to you as a part year resident.

@KenDoesHisTaxes