We moved to NYC in September (from a non-state-tax state)

[LenaH]

We'd love to help you complete your tax return, but need more information. Can you please clarify your question?

[rukh214]

Hi - Editing numbers for personal reasons, but basically, Turbotax is showing the entire year's income as taxable NY state income, when only part of it should be (bc we lived in NYC starting in September - Dec 2021 + wife's employment by NY-based employer Jan - May 2021). I tried to make this clear as I was filling the information, yet the NY state taxable income is effectively the total year's gross annual income. Not sure what I can do to correct this... Thank you.

[LenaH]

It may appear as if New York taxes all your income, but you can rest assured that they don’t. New York State uses the New York Income Factor when determining your tax amount. Their state return starts with all your taxable income and taxes it at the applicable New York State rate based on your total income. Then, the state uses your New York sourced income (the amount you allocated) to determine your New York Income Factor, which is what percentage of your income was earned in NYS. Lastly, they multiply your total tax by the New York Income Factor to determine your NYS tax. You will see this towards the bottom of the screen, under the header Taxes on the Let's Review Your New York Numbers screen.

@rukh214

[rukh214]

Hi -  What can I do if I disagree with the NYS Income Factor designation? Because I calculated it myself, and it comes to 0.82 (if I divide the total NYS-earned income (either from NYS employer while living elsewhere + NYS-earned while living in NY) by amount taxed by NY), whereas the factor mentioned in my TurboTaxes is 0.9157...

Is there a recourse? The deadline is soon and I'm not sure there is enough time to correct this...If we submit as is, is it possible to ask for correction later, or is it better to ask for extension to try to remedy this? Thank you.

[TomD8]

From Page 29 of the NY Instructions for Form IT-203:

Line 45 – Income percentage:
To compute your income percentage, divide the amount from line 31 in the New York State amount column by the amount from line 31 in the Federal amount column. (These amounts must be entered in the boxes to the left of line 45.) Round the result to the fourth decimal place. For example, if the amounts used were $12,000 divided by $36,000, the result would be .3333. Enter this decimal on line 45; do not convert to a percentage.

https://www.tax.ny.gov/pdf/current_forms/it/it203i.pdf

[rukh214]

Thank you for this! I did the calculations and disagree with Turbotax's number. I guess the best is to try to file and dispute later, so I don't miss the deadline?