NY State Taxable Income for Only ONE Spouse (both non-residents)

[Fight Over-Taxation]

My wife's employer moved her job to NY mid-year 2021. We both are non-resident to NY. I intend to file an extension for NY to enable enough time to thoroughly review the complicated NY rules and calculations, even for the non-resident return.

We have used Turbotax for years, but this is the 1st time I need to file a multi-state return. In Turbotax, it lists me as the first name on all filings (joint returns). However, I have absolutely no NY income sources and do not want to be listed (with my SSN) as the primary Taxpayer on all the Turbotax forms, including the extension form, and my SSN in the margins of all forms (not hers... the source of the income in NY...). The extension lists me as though I am the one who has NY income / tax liability, etc. and has a space for her as the "spouse" but shows my SSN as the primary everywhre.

Is there a way to flip the order of the names / SSN on the forms in Turbotax?

Turbotax knows that I have no NY income (I entered NO at least 3 different places), yet it lists me as the NY "taxpayer." Please help me flip the order of the taxpayers so she is the one listed as the primary filer / taxpayer in NY. 

Do I need to delete myself entirely from TT and then re-enter my info so it puts me in the 2nd position? If I do so, will it conflict with prior Federal filings that have had me listed first? Is there a rule on who must b entered first? To delete and re-enter at this point seems like an unbelievable waste of time and there must be an easier fix within the software. Please advise.

Thank you. 

[DanielV01]

The order in which the taxpayers are listed on the return has no bearing on anything.  For a joint filing, one name is listed first, and the other is listed second.  If your name is listed first for the Federal return, it will be listed as the "primary taxpayer" on all state returns even if you have $0 income for the state.

According to New York's website New York Filing Statuses, in general you must use the same status as your Federal Return.  In this case, your non-New York income is factored out.

With a joint return, it makes no difference who is listed first and second on the return.  You are considered to be "joint and separately liable" for the return, unless you file separately.  This means that you are both equally responsible for the income and tax liability claimed on the return.

[Fight Over-Taxation]

Thanks for the reply, but I disagree for the following reasons:

1. The NY state extension instructions that are printed with the NY State extension form IT-370 within Turbotax) clearly state on p.2 that married taxpayers who file a form IT-203-C do not list the spouse with no New York source income on form IT-370. That is my situation.

The instructions go on to say this causes a problem when monies are paid with the extension because it is split equally into separate NY taxpayer accounts, but when the return is eventually filed, the portion paid and sitting in the account of the spouse with no New York source income will not be applied. 

We are filing form IT-203-C because I have no NY source income, and Turbotax has already prepared the form, so how can I remove my name and SSN as the primary taxpayer on the extension form IT-370 generated by Turbotax, per the instructions?

2. The vouchers for future estimated NY taxes (Form IT-2105) only list my name and my SSN, but I have zero source income in NY, and will have form IT-203-C filed. There is no reference to my spouse at all or any of her information on these estimated tax payment vouchers.

3. NY form IT-203-C explicitly states that the spouse with no New York source income cannot be required to sign the joint return and cannot be held liable for any tax, penalty, or interest that may be due. They require a joint return to determine "base tax" which is then subject to an allocation process, so it is not as simple a joint return = joint liability, etc. 

Therefore, I want to know from a Turbotax expert how to reverse the names *without completely re-entering / re-doing the tax returns* so that my spouse is listed as the first and becomes the primary name on the returns, which may solve some of this. I still think the extension form generated by Turbotax will have a problem listing both, in conflict with the instructions.

Thanks you

[DanielV01]

To invert the names on the New York return, it will require them to be inverted on the Federal Return.  You won't be able to switch them around in TurboTax, but if you wish to file the extension directly with the state, it is not difficult to do so online at the following link:  Apply for an extension of time to file an income tax return.

Otherwise, if you want to switch the names around you will either need a new account to do so or clear and start over if this is a new account.

[Fight Over-Taxation]

Will there be any repercussions to the Federal or resident state returns for inverting names, other than possible delays?

When you say "clear and start over" - do you mean clear everything, or just clear my specific info out and then re-enter my info so it now falls into the second position?

We have used TT for many years now, and carry forward info year to year. There is a lot of history and carry forwards. Is it even practical / possible to do as you are saying just to something as simple as invert the names? 

Thanks again.

[DanielV01]

To file in inverted order (which is not recommended federally), you have to start the entire return over again.  And if it's an older account, you really would need a new account in your spouse's name.  And if you noticed on the New York website I provided earlier, there is a provision for your spouse to file a separate New York return if you refuse to sign the joint return.  (Not recommending this, but it's an option).  That would still require your spouse to set up a separate account to set up the mock (pretend) return to produce the separate return.  It won't be possible to e-file it (ignore the New York warning that will generate), but that's your other option.

Point is, switching the filing order is not that easy to do, because state returns require the same filing order as Federal.  If you need a New York extension in the correct order (or your spouse filing separately), you may want to go ahead and set up the extension directly with the state.  Here's instructions on how to File a Joint Federal and Separate State Returns.