My residence in NYC in New York state. For much of 2017, I was consulting and working Texas with weekends back in NY. Because Texas doesn't have an income tax, I don't have to file there. My W-2s for NYS reflect that not all my federal income was earned in the state. From what I understand though, TurboTax can't handle this situation. Is that true?
Yes TT can handle that. In fat, it's not an issue. That would only be a potential problem if you were filing more than one state return.
As a full year NY resident, all your income, regardless of where earned is subject to NY tax. Had you been required to pay tax in another state, NY would give you a credit for that.
Yes TT can handle that. In fat, it's not an issue. That would only be a potential problem if you were filing more than one state return.
As a full year NY resident, all your income, regardless of where earned is subject to NY tax. Had you been required to pay tax in another state, NY would give you a credit for that.
But my W-2 for NYS clearly indicates that only part of my income was earned in the state. I don't have to file income tax in Texas but that's because they don't have one. In past years, where I've worked in multiple states I file in each of those states and only pay partial income tax in NYS. My own tax office at work seems to think this should be the same this year.
Although I don't disagree with you that does make sense too. But generally the view at work is when you work in a no tax state as a consultant that should benefit you.