New York taxes: I am a salaried employee. What does "Allocated Income Based on Business" mean?

[steofn3]

I am doing my 2022 taxes. I lived in Indiana until 8/8/2022. I lived in New Jersey and worked in NYC from 8/9/2022.  

I am a salaried employee. I don't have any business or self-employment income. I allocated my New York income based on what's earned in NY. Turbotax is asking the following question. What does it mean?

Allocated Income Based on Business?

You must explain how you figured New York income if you allocated is based entirely on volume of business transacted.

[cucpa1991]

Hi!  We get alot of the NY tax questions.  Any version of Turbotax can help you with the multistate tax returns.  First you will always complete the State returns after you complete (and reviewed) the Federal return.  Next you will complete your part-year and/or non-resident state returns next and at the last step you will complete your resident state return.  TurboTax will assist you with the allocations when you follow this order.

One pc of info that I don't see is where you worked while living in Indiana?  

If you did not work while in Indiana and you only income for 2022 was from NY, then you allocation is 100%, even though you lived in NJ.  

The question you posted is driven by someone who works in more than one state and needs to advise the states (and Turbotax) which method you used, such as percentage of income base upon time, or client locations.  

[steofn3]

Hello @cucpa1991 

I worked in Indiana until 8/8/2022. I have no NY source income until 8/8/2022. I have allocated the income based on what's earned in NY (% of NY / Total income). 

Could you please let me know what does the "Allocated Income Based on Business" mean? Do I need to worry about it? 

Here is a different, but related question I asked.