NY figures state taxes on all income but you only pay NY state taxes on your NY source income percentage of the total income.
Each state has a different ways of calculating state
income taxes.
The
way that the NY state tax return works is that NY looks at all of your income
from all sources and generates a NY state tax on all this income. However,
when NY is determining the actual NY state taxes owed, NY multiples the
total NY taxes on all income by the percentage of NY source income over all
source income. So if all your income is $10,000 but NY source income is $8,000,
NY will calculate the NY state tax on $10,000 then multiply this by your NY
source income percentage ($8,000/$10,000). That is why all your income is being
reported on your NY state tax return.
You
can check on what portion of your NY total taxes is being taxed on your NY
source income by previewing your NY Tax Summary:
To
preview NY Tax Summary:
- Sign into https://myturbotax.intuit.com/
- Under Tax Timeline, click on
Take me to my return
- Go to "My Account"
> "Tools"
- Under the Tools Center,
select "view tax summary"
- Select "NY Tax
summary"
- Your Total New York State
Taxes will be the portion of Taxes calculated in NY that relates to your
NY source income.
