Sole proprietor income tax for a resident and a non-resident states

[AlexNY]

Greetings.

I live in NY and work (w-2) for a company. I'm also a sole proprietor. In 2020 I had a couple of customers in NJ for whom I did some work. I registered with NJ Tax Department for sales tax purpose, then collected and paid sales taxes. I also had income from my proprietorship in NY. And now I'm confused how I file NY and NJ tax returns.

When I file NY tax return do I report all income and loss from my proprietorship or only that part that took place in NYS?

NJ indicates that one has to file NJ income tax return if "your gross income from everywhere for the entire
year was more than the filing threshold". Does gross income mean literally all checks that I received or checks minus my expenses/loss? Does "everywhere" mean income from my proprietorship in NJ and NY together?

Thanks in advance!

[ThomasM125]

In New York, you do need to enter all income received. When you do your federal return in TurboTax, all of your income will be transferred down to your New York state return. You will then take your New York income and divide it by your total income to come up with a percentage that will be multiplied by your tax to determine your net tax for New York.

For New Jersey, your gross income means your total income minus expenses. So, it does include your New York income.

[AlexNY]

Probably my question about NY was silly because I forgot that New York resident tax return requires all income to be reported. That's why when I do the return in turbotax there's no option to change any numbers - they're transferred from federal tax return. So what did you mean by saying that I can do calculations to determine net tax for NY? Where do I perform such action in Turbotax and what does it change in my state returns? I'm sorry I didn't get it.

[AlexNY]

Disregard my previous comment. I began doing NJ tax return and it looks like things came clear to me. Thank you.