New York Income Factor incorrect for non-resident worker

[peterbooth]

My wife and I live in Vermont. My wife works in NY State. Her income from NY is ~31% of our combined income. Why is the New York Income factor being calculated as .6293 by TT?  Where can I see the values that generated this number?

[LenaH · Accepted solution]

New York State uses the New York Income Factor when determining your tax amount. Their state return starts with all your taxable income (whether or not it is NY sourced) and taxes it at the applicable New York State rate based on your total income.

Then, the state uses your New York sourced income (the amount you allocated) to determine your New York Income Factor, which is what percentage of your income was earned in NYS. Lastly, they multiply your total tax by the New York Income Factor to determine your NYS tax. 

You will see New York prorating your taxes on the Let's Review Your New York Numbers screen at the end of your New York return. You will see this toward the bottom of the screen, under the header Taxes. 

[rjs]

What TurboTax calls the "New York Income Factor" is the income percentage on Form IT-203 line 45. You can see the calculation on that line of the form. The amounts that are used in that calculation come from the two columns on Form IT-203 line 31.