Moved from NJ to NY mid-year and work in NYC - Allocate City Income

[marisa7]

I lived in NYC for part of the year, then moved to NJ (while still continuing to work in NYC). I am filling out a NY State part-year resident tax return and need to allocate my income based on the time spent as a resident of NYC. However, TurboTax will not let me change the number in the "wages and tips" field from 0 to the actual number. Please help!

[ErnieS0]

Nonresidents of New York City do not pay NYC income tax. Your employer should have stopped withholding NYC tax when you moved to New Jersey.

You can make changes in the New York section.

1. Go to Your City Residency Information
2. Select Edit on About You
3. Select Part-year resident on New York City Residency Information for You
4. Enter dates for your Part-year Residency Period
5. Skip Yonkers
6. Edit your job on Your Wages Summary
7. Change the amount on Wages Information to Wages Earned while living in NYC
8. On Your New York City Wages, select Earned 100% as resident if you made an adjustment on the previous screen to show NYC-only wages

[marisa7]

The section I see says, "Part-year city additional allocations and info." When I click on that, the heading says, "Allocate City Income" with rows for wages, interest, and dividends. The columns are Federal, NYC Resident Portion and Yonkers Resident Portion. When I try to allocate the portion of my wages from when I was a NYC resident, it is automatically 0. Don't I have to pay city taxes for the part of the year that I was resident?

[ErnieS0]

Yes you do pay New York City income tax for the time you were a NYC resident.

 Are you using TurboTax Online or CD/Download? And if download, are you using the interview screens or are you entering data directly on the forms?

[marisa7]

I'm using the Download version (Deluxe), and I'm using the interview screens.

[LenaH]

To allocate your NYC income in TurboTax Desktop, please follow the instructions below: 

1. Open your return.
2. Click on New York at the top.
3. Confirm Part-year residency status.
4. Select New York City on the screen Tell Us Your New York City.
5. Select school district.
6. Enter date of last move and select Did not live in New York State as of December 31, 2021, but received income from NYS sources while a nonresident.
7. Answer yes to the question Were all of your wages and/or your self-employment income earned in New York State?
8. Enter how much of your earnings were made while living in New York.
9. Enter your other New York resident income. 
10. Enter your nonresident New York income.
11. Follow the on-screen instructions.
12. Ensure your city residency information is correct. 
13. Continue through the screens.
14. Allocate NYC income on the screens Allocate City Income. 
15. Follow the on-screen instructions. 

@marisa7

[marisa7]

On step 14 "Allocate NYC income on the screens Allocate City Income," TurboTax does not allow me to change the number in the box for "NYC Resident Portion." This is my issue. I want to change the number to the correct number, but TurboTax will not allow this box to be changed. It will allow me to change every other box on that page, except that one.

[LenaH]

It would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Download:

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information. 

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@marisa7

[marisa7]

I've sent the file. The token number is: 973386

Thanks!

[LenaH]

The reason for your issue is that you need to designate yourself as a part-year resident of New York and a part-year resident of New Jersey. Currently, you are showing as a full-year resident of New York. 

To do so, please follow the instructions below:

1. Open the return.
2. Click on My Info on the left-hand side.
3. Click Edit next to your name. 
4. Under State of Residence, enter New Jersey.
5. Click yes that you lived in another state in 2021. 
6. Enter New York. 
7. Enter the date you became a NJ resident. 
8. Click on State.
9. Click Edit next to New York.
10. Ensure NY residency is a part-year resident return. 
11. Follow the on-screen instructions. 

Based on the residency time frame entered on the return (I estimated you lived in the city for 6 months), you are being charged NYC resident tax based on the time frame you lived in NYC. 

@marisa7

[marisa7]

When I preview my tax return it is already using the part-year resident form.

Your prompts below are not the same as what I am using. I use the download version, but from what I see it says part-year resident for NY.

[LenaH]

To fix your issue, let's try to allocate your wages another way.

Please follow the instructions below in TurboTax Desktop:

1. Open your New York return.
2. On the page You Just Finished Your New York return, go to Update next to your New York City and Yonkers info and allocations. 
3. Continue through the screens.
4. Click Edit next to your W-2 on the screen Wages Summary -- New York City. 
5. Continue through the screens. 
6. Click allocate this employer by percent for the screen New York City Wages. 
   1. Ensure that the amount is allocated properly.
7. Continue through your return.

Once complete, your IT-360.1 (Line 1, Column B) should show NYC wages on Line 1 when you look at the forms in Form View. In addition, Line 51 of your IT-203 should show part-year resident NYC tax. 

@marisa7

[marisa7]

On step #6, it does not allow me to put in a percentage, only an exact amount. The amount that I had put in is what was earned while living in NYC.

On IT-360.1 Line 1, column B is says 0. On IT-203 Line 51 it also says 0. This is precisely my issue - these should not be 0.

[LenaH · Accepted solution]

You cannot allocate your wages because the screen is marked off as 100% as nonresident. Please see the screenshot below. This was the screen you should have seen in Step #6. 

Choose Earned 100% as resident instead of Earned 100% as nonresident.  Then press Continue.

This will then flow to the Allocate City Income screen.

@marisa7

[marisa7]

That was it!!! Thank you so much.