New York State Income Allocation.

Forum|Forum|5 years ago
February 22, 2021
1 reply
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I file a Non-Resident Tax Return for NEw York State. In 2020 I received Unemployment Compensation from NY State. In Turbotax it asks me to allocate the New york Source Portion. If I enter the amount of compensation I receive the program states I owe taxes. If i leave it black, as originally shown, I show a refund.

What is the correct entry?

LenaH

Community Manager

It depends. You have to enter the amount of your unemployment that was received as a nonresident resulting from your employment in New York State. If your unemployment compensation received was a benefit for working solely in New York State, then you would allocate your entire unemployment to your non-resident New York State tax return.

If the unemployment compensation received from New York State is based on wage or salary income earned partly in and partly out of New York State, you would have to determine the amount allocable to New York State in the same manner as the wage and salary income on which it is based. For example, if your wages were originally 50% allocated to your resident state and 50% allocated to New York, you would use that same allocation for your unemployment.

If you did not pay enough taxes on your unemployment during the year, you may have to pay additional taxes on it when you complete your tax return. New York considers unemployment income as taxable income for residents and non-residents.

I do not know what your resident state is, but you should be able to get a credit of taxes paid to New York State on your resident tax return.

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mike247

Level 2

Is this the same for the -$-10,200 Federal Unemployment exclusion? Turbo tax is asking how much of the exclusion is derived from NY sources? NY is not excluding the 10,200 UI from taxable income? I am a NJ resident that received unemployment as a result of income solely made/lost in NY. I entered the total unemployment amount as you indicated in your above answer. The next screen asks about the 10,200 exclusion.

mike247

Level 2

That's correct. New York State is currently decoupled from the federal American Rescue Plan Act of 2021.

Since NY state tax calculation starts with Federal AGI which already includes the exclusion, the exclusion will be added back on Form IT-558 New York State Adjustments.

@mike247

This is not a great answer, honestly. Since you are a TT rep, I need you to FOCUS on how TT is asking these questions on TT and NOT FOCUS on the question on the form since we are using TT and not filling out a manual form. TT asks this question in a sub par way on TT online. There are many threads about this particular question and non of the experts are giving a straight answer. Yes, NY is decoupled, the question is HOW CAN I GET THIS TO BE REPRESENTED ON THE FORM USING TT SINCE TT 1st ASKS where the UI is derived from---on 1st question on TT ( not the form) I put the FULL UI amount since the full UI came from NY. THE NEXT SCREEN ASKS how much of the $-10,200 ( negative number) exclusion came from NY. THIS IS A CONFUSING WAY TO ASK THIS SINCE the exclusion derives from UI from NY yet the exclusion does not apply to NY. CAn you folks look at the TT program before you answer? Here, I think I should put ZERO, no? IF this is the case, your answer YES previously is not correct or not clear. Yes could mean, yes, put the -10,200. Can you reread the thread please. Thank you.

If you are telling me it is correct that I have to enter $-10,200 then this will deduct 10,200 from the form it was just added to. It seems that I would have to enter ZERO there, no?