I don't understand where the amount we start with for New York is coming from because it is higher than the income number that I have on my W2

[ValerieE · Accepted solution]

The amount we start with for New York is your total income from all sources as reported on your federal tax return.  It includes your W2 but could also include any interest, dividends, unemployment, self-employments, rental, and other income.

If you are filing a nonresident or part-year resident return in New York the process can be confusing.  New York tax law states that you have to start with your total federal adjusted gross income and then deduct any adjustments and your deductions.  The tax is computed on this amount which is often higher than your New York source income.  This causes a lot of confusion for filers, but it is how the state of New York says to calculate the tax.  You get a reduction in this amount based on your New York source income under the "New York Income Factor".  If you look under the Taxes section on the summary page this should be the second item.  The tax calculated on the total federal income is reduced by a factor that takes your New York source income into consideration.  In the end you are only paying taxes on your New York portion.

[williamhoki]

How is my New York Income Factor 2.0?

[fitzbergjk]

How is my New York Income Factor 1.99