Mortgage interest deduction for non-resident NY state tax filing

[Anonymous]

I bought a house in WA where I lived the whole year. I also have earned income from NY, hence I need to file NY state tax return as non-resident. Can I take the mortgage interest deduction for my NY taxes even if the house is in a different state and I didn't live a day in NY? Turbotax seems to be OK with this and I couldn't find anything on the contrary, but it feels a bit weird if it's allowed.

[chodgden]

Did you ever get a answer to this? I am in the same situation sort of where i live in Maryland and work in Delaware and turbo tax is deducting my property taxes and mortgage interest for my house in Maryland off my Delaware taxes......that doesn't seem legal at all

[ErnieS0]

@Anonymous New York uses a base tax based on your total income so all your itemized deductions are included as part of the calculation to arrive at New York taxable income. NY then prorates the tax based on the percentage of New York income.

For example, if you earned $100,000 everywhere and had $20,000 in total deductions, then your NY base income would be $80,000. If the NY tax on $80,000 is $x and you earned $50,000 in NY then your part-year/non-resident tax would be 50% ($50k/$100k) of $x.

@chodgden Delaware works the same way. Your tax liability and personal credits are prorated by the ratio of Delaware income / Total income x total tax.