In 2018 I spent the first 3 months in NY. My only income was from dividends in which the NY portion was $1035. I then moved to NC where I worked full time for the remaining 9 months of 2018. After going through the NY state portion of TurboTax, it gives me a summary saying "Amount we start with for NY: $67,094"... Then it subtracts the standard deduction and says "Amount taxed by New York: $59,094"
Is this right? Why would NY be taxing my NC income? I double checked and made sure that the only income I entered for NY was the $1035 from dividends.
The way that NY calculates your tax as a part-year resident is to compute the tax based on your entire income, then apply a percentage to the tax based on how much of your income is from New York sources, or was earned when you were a NY resident. If you look at line 45 of your Form IT-203, you will see the income percentage. Line 46 shows the allocated NY tax.
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