We live in Tennessee. I remote to New York and I pay New York taxes. My husband works in Tennessee. Why is Turbo tax including my husband's salary?

[trac636530]

Turbo Tax has combined our wages for New York but my husband only works in Tennessee, therefore, reducing my refund

[HelenC12]

NY uses your entire AGI, which includes your husband's TN income, to calculate your tax on NY income. NY calculates what your New York tax would have been if you earned everything in NY, then prorates that tax based on how much of your income was earned in NY. The NY state tax interview will have a screen where you can allocate your husband's non-NY income.

Per the instructions for Form IT-203, page 5, How are residents and part-year residents taxed?, You will compute a base tax as if you were a full-year resident, then determine the percentage of your income that is subject to New York State tax and the amount of tax apportioned to New York State.

Additional source: ToddL

[TomD8]

NY gives you the option of filing separately when both spouses are nonresidents of NY and only one has NY-source income.

You may want to run the numbers to see if this option would save you money.