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t1650
New Member

Why if One spouse works out of state (NY) would the non resident state form seem to be charging our total income? We live in CT

 
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3 Replies
Hal_Al
Level 15

Why if One spouse works out of state (NY) would the non resident state form seem to be charging our total income? We live in CT

What is the non resident state? What is your home state?
State rules vary widely.  One  technique, some states use, is to calculate tax on all your income and then  give you a non resident credit.  So, it only appears that your total income is being taxed.
t1650
New Member

Why if One spouse works out of state (NY) would the non resident state form seem to be charging our total income? We live in CT

Thank you for responding. The nonresident state is NY. we live in CT
ChristieB
New Member

Why if One spouse works out of state (NY) would the non resident state form seem to be charging our total income? We live in CT

For New York Non-Resident returns, the summary page can be misleading, because it appears that your entire income is taxed. But, what is happening is that the amount labeled as Amount Taxed By New York is actually just being used to find the Starting Amount (your New York State Tax). 

Then, the Starting Amount is multiplied by your Income Factor, which should be the amount you earned in New York divided by your Federal Adjusted Gross Income. 

The resulting tax due is the amount of tax that you would normally pay in your tax bracket for all of your income, reduced so that you only have to pay for the percentage of that tax that you actually earned in New York.

As long as the correct amount has been allocated during the state interview portion as being your only source of New York income, you can feel confident that TurboTax is accurately calculating everything for you.

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