Does New York Source income include interest income? I work in NY, my wife has interest income in NY from a 1099-int (we live in NJ). Do we both have NY source income?

[MaryK4 · Accepted solution]

No, interest income is sourced to your resident state so the INT would be New Jersey income.  See Tax Bulletin IT-615 (TB-IT-615)

[dkrew72]

To confirm, this is accurate even if the 1099-int says "NY" for box 15? The account was opened in NY prior to her moving to NJ.

[MaryK4]

Yes, that often happens when the bank does not update the address in all of their systems (even if your mailing address is updated, sometimes it does not update on the tax forms).  As long as you were living in New Jersey, you do not report it as NY income.

@dkrew72