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New Member
posted Feb 16, 2021 2:28:02 PM

State tax allocation % is not working.

When I enter the 50% of wage income attributed to NY State, Turbotax ignores it and allocates 100% to NY State.  How do I correct this?

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1 Replies
Employee Tax Expert
Feb 16, 2021 3:20:54 PM

If you are a NYS resident, then all your income is included on your resident return and you get a credit for income tax paid to another state for wages sourced from that state. However, you will need to file that non-resident return as well. 

 

If you worked for the same employer and were a part-year resident of two states, then you would have to file two part-year returns. 

 

The first thing you want to do is make sure you've filled out the Personal Info section correctly:

  1. With your return open, select My Info in the left-hand menu.
  2. Then, on the Personal info summary screen, please make sure your resident state (as of December 31, 2020) listed under your name is correct.
  3. Then, scroll down to Other State Income, and select Edit.
  4. At the Did you make money in any other states? question, answer Yes and make sure your other part-year/nonresident state is selected from the drop-down.
  5. Select Continue to return to your Personal info summary.
  6. Click on State on the left hand side. 
  7. Add the state of second state as a non-resident/part-year resident. 
  8. Follow the on-screen instructions. 

If you are filing a NYS resident return and a non-resident return of another state, it is recommended that you complete the non-resident return first to ensure accurate calculations.