What is NYS Adj on it203?

[LLLnew]

Question 1: What is the New York Adjust Gross Income on Form IT203? Is it the New York State amount of Line 31 or the amount on Line 32 (which is the Federal amount of Line 31) ? Question 2: Suppose my Line 32 is $200,000, my line 37 is $192,000, and filing status is single. According to worksheet 7, should my NY Tax on Line 38 be 6%*192000 = $11520?

[BillM223]

Perhaps the way New York State does the ultimate tax calculation is leading to confusion. New York calculates the initial tax more or less on the federal income amount (even though lines 1 though 31 ask for the New York State amounts).

Only after it has calculated the initial tax does it prorate the initial tax based on the ratio of NYS income to federal income (line 45) to end up with the real NYS tax on line 46.

I am not sure that I have answered your question, but that's because I see what you are asking but I don't know why there is any confusion - just follow the instructions on the form.

[LLLnew]

Hi Bill,

Thanks a lot for your answering. I understand that it203 calculate the NY tax by first using the Federal Adj, and then prorated using the NY amount

But what I really wanted to clarify is the accurate definition for the "New York Adjust Gross Income" (or in short the "NYS Adj"), and define this terminology of "NYS Adj" accurately is very important in many computations:

Let me explain more clearly:

1) In the instruction IT-203-I (2024) Page 43 of 47,

worksheet 7, "Tax computation – New York adjusted gross income of more than $107,650" 

It use the terminology "New York adjusted gross income" in the title of this worksheet.

If you look at it203, the terminology: "New York adjusted gross income" appears on Line 31, but Line 31 has two columns, one is the Federal amount, and one is the NY amount.

So, my understanding is: the NYS Adj should be the NY amount on Line 31. 

Yet, on worksheet 7 Line 1, the instruction is to do the following:

Line 1: Enter your New York adjusted gross income from line 32 ......................................................

Note that Line 32 is just a copy of the Federal Amount on Line 31

So, I am very confused bout what should be defined as "New York adjusted gross income" on it203.

2.  I also have to file Delaware Resident return (DE PIT-RES) after I finish filling the NY nonresident return (it203). And when I file the DE Resident Return, I need to get the credit for the Tax paid to NY.

So, I must fill the worksheet: "Credit for Tax paid to Other state".

On the first line of the worksheet: "Credit for Tax paid to Other state", it asks me to fill the NY Adj. So, I am not sure I should put (a) the amount on it203 Line 31, the Federal amount (this is also the amount on Line 32) or put (b) the amount on it203 Line 31, the NY amount 

Please help!

Thanks

--Li

[BillM223]

You want the legal definition of nonresident adjusted gross income?

(a)Items included in New York adjusted gross income.

The New York adjusted gross income of a nonresident individual includes all items of income, gain, l...

In practice, this means that anything that is derived or connected to NYS sources that end up on the federal return, becomes part of the NY Adjusted Gross Income.

In the New York interview in TurboTax, you are asked to allocate income items to New York sources. These entries will go in to the makeup of the NYSADJ.

Perhaps these paragraphs from the NYS Instructions will help

Your New York adjusted gross income is your federal adjusted gross income after certain New York additions and New York subtractions (modifications).

New York State taxes certain items of income not taxed by the federal government. You must add these New York additions to your federal adjusted gross income.

Similarly, New York State does not tax certain items of income taxed by the federal government. You must subtract these New York subtractions from your federal adjusted gross income. See below and Form IT-225, New York State Modifications, and its instructions.

As for bringing your NYS tax to Delaware, I would have thought that that was done automatically if you do NYS first, then DEL.

[LLLnew]

Hi Bill,

Sorry that I might confuse you. To be more clear, all I want to make sure is:

When there is a term "New York Adjust Gross income", should I enter

1) Line 32 from it203

or

2) Line 31 NY Amount from it203

Thanks

--Li

[KeshaH]

Your NY adjusted gross income would be line 32 from Form IT-203. Calculations are based on your federal income as adjusted for NY state tax law.