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jasred
Returning Member

Rollover IRA withdrawal NOT taxable for NY nonresident, correct?

I withdrew 140k last year from my retirement account, a rollover IRA.  I am a NJ resident but work in NYC.  My understanding is that my 140k retirement account withdrawal is not considered NY source income.  The withdrawal is taxed by NJ but not by NY.  Is that correct?  If correct, I'm having a problem with my nonresident NY return, IT-203.  Turbotax is pulling my federal adjusted gross income (which includes the 140k withdrawal) into my NY return and including it in the "Amount taxed by New York."    

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1 Reply
MaryK4
Expert Alumni

Rollover IRA withdrawal NOT taxable for NY nonresident, correct?

As a nonresident, you only pay tax on New York source income, which includes earnings from work performed in New York State, and income from real property located in the state.   You will calculate a base tax as if you were a full-year resident, then determine the percentage of your income that is subject to New York State tax and the amount of tax apportioned to New York State.

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