I moved from NY to PA. W2 from each state. When I enter my PA W2, but tax due for NY state increases. How does this make sense?
When I looked at the individual page - it subtracts the 8k standard deduction from the federal AGI to calculate the New York taxable income. How does this make sense?
New York initially computes the tax due based on total, federal income. Then calculates the percentage of this attributable to New York, income either earned while a resident of New York or sourced to New York while a nonresident. This may cause the tax to go up even if income belonging to another state is entered, a higher tax bracket may be reached in the initial computation of tax.