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jancie54
New Member

Worked in MA, earned 50,000. Also self-employed, 6,000 from NY (before deductions). NY tax return includes ALL income, says I need to pay taxes on the entire $56,000?

I worked in MA and earned 50,000.  I also had a separate business and $6000 was paid from a NY-based company.   I'm not sure I need to file a NY state return for the $6000 but when I did it through TurboTax, it included the entire $56000 on the taxes and said I owed over $300. Does this make sense?  The only income I got from NY was $6000, which would be even less after business expenses.  


Any suggestions?

1 Best answer

Accepted Solutions
DanielV01
Expert Alumni

Worked in MA, earned 50,000. Also self-employed, 6,000 from NY (before deductions). NY tax return includes ALL income, says I need to pay taxes on the entire $56,000?

It is the way NY calculates income tax on a nonresident.  They pretend that all of the income is taxable in New York, and then prorate the tax to the amount of income actually earned in New York.  The New York return does make it look like all of the income is getting taxed, but on lines 45 and 46 you will see the tax being prorated to the income earned in New York.

Since Massachusetts also taxes this income, you will get a credit for the tax you pay to New York on this same income.  The credit from New York should basically cover the Mass Tax that would be due on this income.

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3 Replies
DanielV01
Expert Alumni

Worked in MA, earned 50,000. Also self-employed, 6,000 from NY (before deductions). NY tax return includes ALL income, says I need to pay taxes on the entire $56,000?

It is the way NY calculates income tax on a nonresident.  They pretend that all of the income is taxable in New York, and then prorate the tax to the amount of income actually earned in New York.  The New York return does make it look like all of the income is getting taxed, but on lines 45 and 46 you will see the tax being prorated to the income earned in New York.

Since Massachusetts also taxes this income, you will get a credit for the tax you pay to New York on this same income.  The credit from New York should basically cover the Mass Tax that would be due on this income.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

jancie54
New Member

Worked in MA, earned 50,000. Also self-employed, 6,000 from NY (before deductions). NY tax return includes ALL income, says I need to pay taxes on the entire $56,000?

Thank you - I owe $50 to NY and only got $14 back from MA but it's not worth it.  And I thought Taxachusetts was bad! 🙂  Thank you for your help!  
jancie54
New Member

Worked in MA, earned 50,000. Also self-employed, 6,000 from NY (before deductions). NY tax return includes ALL income, says I need to pay taxes on the entire $56,000?

I meant that it's not worth fighting over.  Thank you!!
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