Turbotax keeps allocating my non NY business income to NY, how do I adjust that?

[atizazh]

I made income through self employment in Indiana, and I am a full time resident of Maryland, made part-time w2 income in NY

[ThomasM125]

You can't adjust the New York tax return to exclude income not earned in New York.

The way the New York tax return works, they tax all of your income no matter where earned. Then, they divide your New York sourced income by your total income to arrive at a percentage of your income to be taxed in New York. They then multiply that percentage by the New York income tax rate to reduce the rate of tax based on your income earned outside of New York. Thus, they tax all of your income but adjust the tax rate to compensate for income earned outside of New York.