What should go in line 4a and 4b on Schedule G-L : NY and PA

[eaglesfan22]

Hi,  my husband and I lived in PA last year till mid Oct and for the whole time we both were working for a NY employer. In mid Oct, we moved to NY and continue working for the same NY employer. As we are doubled taxed(NY and PA), I am eligible to get credit for the taxes I paid to NY. For that I need to fill out schedule G-L. My question is how to calculate the amount that goes on line 4a and 4b?
 

[BillM223]

I haven't run a test, but I would expect that TurboTax would fill those lines in. Just make sure to enter your New York data first.

Line 4a should come off your NYS return, and line 4b looks like it will come off of your W-2 withholding.

If TurboTax asks you for these values, come back and tell us.

[eaglesfan22]

Thanks for the reply. I checked in Turbotax and it is asking me to enter the amount. Not sure from where should I get that. Also, my husband and I both have to fill Schedule G-L form so I don't know how to split the NY tax between me and my husband. 

[BillM223 · Accepted solution]

I admit that this is an unusual form. Most states just give you a credit for taxes paid to other state - they don't make you itemize the particular income items and then ask you to give them the tax in that state on that income (as if you would know). Worse, they don't ask you to separate the two spouses, as if you filed separately in the other state.

So try this:

1. Enter the data on your NY return. You won't know your NYS tax until you do this anyway.

2. Calculate the number of days you were in PA and divide that by 365. 

3. Multiply your NYS income and NYS tax (see your NY form) by this ratio. You do this, because you can take a credit in PA only on income that was double taxed in PA - when you moved to NYS, it was no longer double taxed.

4. If your and your spouse's incomes are similar, just divide the income result on line 3 by 2 and the tax result on line 3 by 2.. If your incomes were very different, you can calculate a ratio of the two incomes and use that instead.

5. Go to your PA return and start entering. Use the amounts from line 4 for gross Wages (income) and tax on Schedule G/L. Don't bother breaking it all out - this is just an approximation anyway.

6. Remember that you have to do a Schedule G/L for each of you (watch for the PA instructions in the interview).

7. When done, check the PA return to see if the results make sense - assuming that you moved to NYS on October 15, 2021, then the ratio on the income and tax should be about 87% of the tax in NYS. So if your PA credit is about that much of the NYS tax, you've done good.

8. Now go back to NYS and do the interview again, to see if it changes anything.