new york state part year ira contribution allocation

[Semantax]

I am filing a New York State part year resident return, and want to confirm how to allocate my IRA contribution in the Allocation Worksheet. I earned all of my W2 income while a NY resident, and other income from investments during my non-resident period. I have entered $6k in Column A (Federal) in row 17J, and think I should also enter $6k in the Column B (NYS Resident Period), and keep Columns C & D (nonresident) blank.  Please let me know if you think this is entered correctly, thanks!

[MaryK4]

Your IRA contribution is allocated based on when the contribution was made- so if you lived in New York January 1 to July 31 and made the contribution in September, it would NOT be New York.  If you made monthly contributions, you would allocate 7/12 of the total to New York.

[Semantax]

Thank you.  So if I'm making the contribution in 2021 for 2020, is none of the contribution deductible for 2020 in NY state?  Also, if I am now a full year resident of NY, does the timing of my contribution matter any longer in NYS for my 2021 filing?

[ReneeM7122]

Correct, if you're making the contribution in 2021 for 2020, none of the contribution deductible for 2020 in NY state.  If you are now a full year resident of NY, the timing of my contribution doens't matter any longer in NYS for your 2021 filing, since it is NYS by default.

[Semantax]

I actually received a different answer from an accountant in NY, who said if the W2 income was earned in NY (as it was) then the IRA contribution would be fully deductible against NYS taxes.  I didn't note in my earlier post that the W2 income was earned fully in NY, so wondering if you agree with what I was advised by the accountant.  Also, I assume if the IRA is deductible in NYS then it is also deductible in NYC, so on Line 17 of form IT -360.1 the IRA would go in both Column A (Amount of Federal Adjustment to Income) and Column B (Amount of Federal Adjustment to Income for NYC), but please let me know if you feel otherwise.

[DaveF1006]

Yes, you can claim the entire IRA contribution against NYS taxes if your entire earned income was in NYS.  As you go through your NYS interview in Turbo Tax, you can allocate income and deductions as your NYS income and deductions. I will show you the screen in the bottom of this post where you will make that allocation.

Once the allocation has been made, the allocation will appear in Line 18 of the IT 203 and in Line 17 of the It-360.1 and columns A&B. Here is the screenshot that shows the screen where you may make the allocation.

[Semantax]

That's very helpful, thanks Dave! 

I had followed the steps you described in the NYS interview, and had done the allocation to NY but when I looked at the IT-360.1 only column A was populated.  I needed to go into Column B in the Form view to also enter the IRA credit against NYC income.  Perhaps Turbotax should have an awareness when the user is an NYC resident, and automatically update column B as well.

Again, really appreciate your input!