Why is NY state taxing income earned in Georgia state?

[user17712108350]

Hello TT experts, 

Another question re. my son's taxes --- he goes to school in Georgia & got a campus job in 2025 & earned some income in Georgia. 
In the Summer of 2025 he got an internship with a company in NY state where he earned some money.  He lived in NY state for 84 days total the Summer of 2025. That company has withheld NY state tax as stated in his W-2 from that company. 
when I was filling out NY State IT-203 form, the NY State taxable income was calculated to be the Federal income minus the NY state standard deduction. 
The Federal income for my son includes money earned from the on-campus job in Georgia + the money earned during the summer internship in NY state.

While he was in NY State during the summer, he was not working that on-campus job because school was closed for the summer. IOW, the Georgia on-campus income & the NY State income are mutually exclusive.
Why is NY State taxing his income earned in Georgia? --- shouldn't the Georgia income be off-limits for NY State?
thank you in advance for your insights re. this question. 

[SusanY1]

New York handles multi-state income a bit differently from other states.  Instead of allocating income, it allocates the tax.  

The return will report all income earned in all states to calculate the tax and then pro-rate the tax to account for the percentage of income that is New York source or resident income. 

If your son's permanent home is not Georgia or New York, that state may also tax the income as his resident state.  While Georgia tends to follow the rule that someone is a tax resident after 183 days in the state, there is an exception for students who maintain their residency in another state (as evidenced by things like voter registration and driver's license issue state.) 

When preparing the return, the resident state should be prepared first in TurboTax, and then the other state(s).  This will allow TurboTax to calculate any credits for taxes paid to other states on the resident state return.

[user17712108350]

Hi SusanY1,

thanks much for your detailed reply. Now it makes more sense to me. 

[user17712108350]

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[AmyC]

You should not need to calculate anything. The NY percentage comes into play on IT-203 as seen here:

1. The Federal AGI is used as a denominator and the NY only income as the numerator to calculate the percentage of income earned in NY. on line 45.
2. NY determines the tax on your entire federal income, line 37, then multiplies the tax times the percentage just determined to create your actual tax on line 50.
3. Tax withheld on line 62
4. Refund line 68
5. Balance due line 70

NY is among the majority of states that tax a nonresident or part-year resident using apportionment/ allocating the tax: 

1. NY will look at your total family income for the year and determine the tax on that amount. 
2. Then, they look at what percentage of the income was actually from NY.
3. NY multiplies the percentage of NY income times the NY tax.

For example:

• NY tax on your federal income is $8,000
• But only 10% of your income was earned in NY
• NY tax liability will be 10% of $8,000 or $800.

@user17712108350 

[user17712108350]

thank you, Amy C for this detailed reply. Yes, I know get it after having gone thru the IT-203 calculations myself.

how does one come up with a number for line 36?
I believe i need to go thru line 33-35 to determine that  -- take the appropriate standard deduction. 

how does one determine line 38?  i believe i have to use the NY state tax tables....

thanks.

[AmyC]

You must remember that NY taxes full income and then allocates the tax. Therefore, the full NY deduction is taken on the full NY income

• Line 32 NY AGI
• Line 33 should be calculating your standard or itemized deduction on NY terms. No allocating
• Line 35 dependent exemption is taken in full
• Line 36 is the taxable NY income
• Line 38 - the program will look up the state tax for you

TurboTax does the work so you don't have to! You are very smart to be asking questions and understanding how it all works. Great job!