Turbotax is not calculating the taxable portion of income when I use the part-time resident form for my NYS tax return. It is taxing my total income from the year.

[mcgraw-megan]

I've allocated the taxable portion, but it is not using that allocation, but rather taking the entire year's worth of income. Has anyone else come across this issue?

[JosephS1]

Without seeing your return and what the proposed IT-203 shows, I can say that NY bases the calculation of tax on your entire income for the year and applies the percentage of total income to NY income.  NY then reduces the tax due based on that percentage.  For instance, if your total income from all sources is $50,000 and your NY source income is $10,000, the percentage applied to the tax would be 20%.  Then if the tax due on the total income is $2,700, the allocated tax would be $540.  

If this is not what you are seeing, please make sure that you listed yourself as a part-year resident of NY and not a full-year resident and that the income applicable to your period of residency and the income from your period of non-residency is clearly listed.  The checkmarks are often difficult to see.

@mcgraw-megan

[mcgraw-megan]

Thank you, @JosephS1 . I've done what you've outlined (a few times now just to ensure I was allocating correctly), and it is still using my total income instead of the allocated portion of my income. Since I moved to NYS at the beginning of Q4, I've allocated 25% of my total federal income (and 0% NYS sourced), however, the calculation continues to take the total and as such, is requesting that I pay a large amount. I've deleted it and started over a few times now to ensure that I'm doing it correctly, yet every time, it still uses my total income, so I believe it could be a bug in the Turbotax code. 

[JosephS1]

I cannot say if this is a software bug as I have not seen any notice on this issue but one thing that is possible is if you entered the data from your resident state as of December 31, 2022, before NY as the non-resident state.  TurboTax methodology is that you enter the non-resident state data before the resident state data.  I admit I am shooting in the dark here but that is a possibility.  I will follow up to see what else I can suggest as I was not able to duplicate your issue.

[mcgraw-megan]

I think that might be exactly it! How would you suggest unwinding that now? 

[mcgraw-megan]

I deleted my New York filing and went through all of it again and it still is showing the same result, @JosephS1 . It continues to pull in the entire income amount from my federal instead of the amount earned in NYS. 

[AmyC]

If you had NY wages for the whole year, it is all taxable to NY with a credit for the other state you lived in. Otherwise be sure you have selected part-time resident then:

1. when you see the screen that says New York Income Allocation, 
2. select No, not all earned in NY. 
3. The next screen will ask for the employer and the NY wages.
4. Continue
5. Select the allocation method, continue.