New York Self-employment Income Allocation

[gaperri55]

Good morning:

I initially put my nonresident self-employment income in as 100% New York State Income.  It should be No New York State Income.  When I choose that option in Turbo Tax Home and Business 2023, it continues to select 100% NYS Income.

How can I correct this?  Do I have to delete NYS and then reinstall it?

Thanks for your help.

Gerard Perri

[AmyC]

If you are a full year resident of NY, it will tax the income and give you a credit for the other state to which tax is paid. If you are part year or nonresident, you should be able to go back through and change the allocations.

You must be using desktop since you used the term re-install. You can switch over to forms mode and delete a form. You can also override an entry, go back through the program, then return to forms and cancel the override. This would also correct your situation.

[gaperri55]

Thank you.  I am a NY nonresident.  It lets me change the allocation on the screen but it appears to not save the change and keeps the income as NY taxable.

[AmyC]

You may not be looking at the NY return through tax eyes. Let me help with that. NY calculates a tax liability as if you were a full year resident. You probably see that NY taxable income on line 37. If you continue down the page, you will see a proration of NY income divided by total income on line 45 and that  percentage is applied to the tax liability to create your NY liability. The total for you is on line 50.

[gaperri55]

Thank you again.  I had to go into the form and zero out the NYS Income amount for the Self-employed income.  It stayed zero and removed it from my NYS Nonresident taxable income.

I do think there is something wrong with the program that you can't make the change through the interview screens.