Partial New York State Income

[SeattleRandyK]

Hello, I have partial income (RSU related) attributed to New York State.  However, in my received W2, it's not the partial amount but ALL the federal income (Box 1) that is reflected in my New York State income (Box 16), is this right and what I should do in my tax filing?  Currently, I know the total amount of my NYS related income which is about $30K, but am not sure about the reportable wage portion of the $30K, or should I file income based on $30K?  Thanks for your help!

[JamesG1]

Does this mean that New York state is not your state of residence?  What is your state of residence?  Are you receiving a W-2 with New York state income solely to report the RSU?  Please clarify.

It depends upon the state(s) that you are working with but it is common to be able to segregate a portion of the W-2 income (and other income) between one or more states.

[SeattleRandyK]

Yes, I am a Washington State resident for all 2024 and was surprised to receive my W2 with ALL my 2024 Federal income showing in Box 16, while only some RSU income is attributed to NYS associated to RSU received a couple years back when I worked from NYS

[RobertB4444]

if the amount that is shown on your W2 for your New York wages is incorrect then you should request a corrected W2 showing the correct amounts.  That makes life easier.

You can change the amount that you are entering in your W2 to the correct amount or make an adjustment on your New York non-resident return to reflect the correct amount.  Just be aware that New York can be aggressive about attempting to collect taxes that it thinks are owed to it so make sure to document any changes you make and proof for those changes in case there are questions later.

@SeattleRandyK 

[SeattleRandyK]

Thanks for the message!  I heard somebody stating that it is common or required practice by NYS to put the total federal reportable wage in NYS state reporting in Box 16 even though only a fraction of that relates to NYS attributable income, is this true?  

[RobertB4444]

Not necessarily.  New York handles taxes a little differently in that they look at all of your income in order to assess the taxes due regardless of what percentage of your income was earned in New York.  This can result in a higher tax rate.  But what is reported on your W2 should still only be the New York portion of your income.

@SeattleRandyK