Problem with ALLOCATE BY PERCENTAGE...doesn't accurately reflect

[creditech]

Hey guys, 

1.  I lived and earned income in NY State for 1 month in 2021--January.

2.  The other 10 months of the year, I lived in Florida

3.  When I try an allocate which percentage of my income I made in NY by typing in 18, the total income still shows 100% of my income as a resident of NY.  The software doesn't update my change correctly.

4.  I was a Senior Field Technician on the ground in Florida.  My W2 lists the corporate HQ in NY for my employer, but my work required me to work from a warehouse on the ground in Florida. It was not remote. 

Can someone tell me how to fix this issue please?  Thanks

Form IT-203

Allocate Wages by Percent

Enter the percentage of this W-2 income from XXX Inc that should be included in New York State taxable income.

[ErnieS0]

TurboTax will not display the allocated amount on the wage allocation screen but will transfer the info to Form IT-203 in the New York State amount column.

You will also see your New York allocation percentage on the screen Let’s Review Your New York Numbers. Look for the New York Income Factor under Taxes.

Last, you should have seen your refund/balance due to NY change when you did the allocation.

[creditech]

Thank you!

[creditech]

Hi, 

On Let's Review Your New York Numbers

1.  It only subtracts 8k from my Federal Adjusted Gross Income (AFGI)

2.  The truth is, I earned income while a resident of Florida for 10 months.

3.  Yet, on the line "Amount taxed by New York" the total according to TurboTax is    (AFGI) - 8K 

4.  Shouldn't the line "Amount taxed by New York" be (AFGI) x (% of income earned while laboring inside NY  State Territory)?  

[DanielV01]

No, what's reflected is accurate.  The way New York calculates your New York tax is first by pretending that all of your income is taxable in New York, and taking all of the full deductions and credits on your entire income to reach the tax amount on the full income, and then prorating your tax to the percentage of New York income.  So, if on all of your income your New York tax is $1000, and 20% of your total income was in New York, then your New York tax is $200 (20% of $1000).

[creditech]

Thank you!  One last question. Where do I add tax write offs for camera equipment I purchased for my sole proprietor business I've had for 10 years?

[PatriciaV]

Is this new camera equipment? If so, you can add it as an Asset for Depreciation on your Federal Schedule C. You have the option to expense the entire amount or write it off over its useful life.

If you've had this equipment for several years, you missed the opportunity to deduct the cost on prior year returns. And if the equipment is over five years old, it's fully depreciated in the eyes of the IRS. No further deductions in this case.