Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 4, 2025 4:21:59 PM

TurboTax NYS Income Allocation Issue – Incorrect Tax Calculation

My husband and I are filing our taxes as Married Filing Jointly, and we are both Massachusetts residents. I am self-employed and performed all my work in MA. My husband worked as a W-2 employee in both MA and NYS, spending about 2-3 weeks in NYS in total.

When completing the New York State tax return, we selected the option "Only my husband worked in NYS" and clearly indicated that I did not work there. When prompted to allocate the percent of my income to NY, I allocated 0%. However, TurboTax is still calculating NYS taxes using my MA income, which is also triggering a penalty calculation.

How can we correct this so that my income is not included in the NYS tax calculation?

0 1 1470
1 Replies
Expert Alumni
Mar 4, 2025 5:05:34 PM

For New York, they calculate tax on all income to determine the tax then apply the New York income percentage to the total for the nonresident tax liability.