Turbotax problem please help!!!

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Turbotax problem please help!!!

Postby abs9986 » Sat Feb 09, 2013 11:22 pm

I'm filing a relatively simple tax return - only complicated issue is that I moved from NYC to MD about halfway through the year.

Everything is fine until I get to the NY state tax portion. After entering all info in it is reporting the wages as the full amount on my federal return. I should be about 50% since I only worked in NY for the first half of 2012. The strange thing is that when I entered the MD info for turbotax - It gave me the option to designate how much of my income was earned only in Maryland and shows the taxable amount to only be the wages I earned in Maryland as opposed to my total wages.

Does anyone know why for the NY state portion it is filling in the total wages instead of those just earned in NY. the Funny thing is that on previous screens it shows just the NY amount but on the final screen showing the return it shows total federal wages as the amount taxable in NY.

Thanks,
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Re: Turbotax problem please help!!!

Postby livesoft » Sat Feb 09, 2013 11:44 pm

I haven't done my NY state tax return yet, but you need to know that NY taxes your NY-allocated income at the tax-rate calculated from all your income as being NY-derived. Make sure you told the tax-return that you were a part-year resident.

So hypothetically,if you earned $50K in NY and $50K in another state, your NY return would be calculated on $100K and lets say hypothetically the tax on $100K is $15,000. Then you would pay 50/100 * $15,000 = $7,500. TT has always done this right for me. That is, the tax is pro-rated.
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Re: Turbotax problem please help!!!

Postby HouseStark » Sat Feb 09, 2013 11:47 pm

I don't know Turbotax, but the issue might be related to your residency status. Make sure you are being considered as a part-year resident of each state and not as a NY resident who earned income in MD. So, TT should be generating two part-year resident state returns.
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Re: Turbotax problem please help!!!

Postby Toons » Sun Feb 10, 2013 12:05 am

I can recall doing dual state taxes last year,one of the states being NY.
When starting the NY state tax return,
One of the interview questions asked in the beginning related to being a full year or part year resident. Make sure you have chosen part year resident. Turbo Tax should then
have you using It-203 form for NY. That is the part year resident for NY.
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Re: Turbotax problem please help!!!

Postby grabiner » Sun Feb 10, 2013 7:14 pm

In NY, part-year residents file a return with two columns, one with full-year totals and one with NY-only totals. You then compute the tax on the full-year amount, and prorate it according to the fraction of income earned in NY. For example, if you earned $40,000 in MD and $20,000 in NY, your tax due is 1/3 of the NY tax on $60,000. Thus you need both numbers (the $20,000 and the $60,000) for your NY return, and you should see both on the form created by TurboTax.

MD doesn't work this way; part-year residents file a tax form which only lists income earned while you were a MD resident. In the example above, your MD tax would be the MD tax on $40,000. (MD nonresident income does work the same way as NY part-year resident income; if you are a NY resident all year but earn $40,000 in MD and $20,000 in NY, your MD tax is 2/3 of the MD tax on $60,000.)
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Re: Turbotax problem please help!!!

Postby Toons » Sun Feb 10, 2013 7:40 pm

Look on page 2 of IT-203 (Part Year Resident Ny tax form) page 2 (link below)
You will see Federal Income and Adjustments
Columns for Federal Amount and New York portion of Federal

http://www.tax.ny.gov/pdf/current_forms ... ill_in.pdf
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