When you file a Part Year or Nonresident return you will need to allocate your income based on what is subject to New York State taxes. Income earned from a New York source or while maintaining a New York residency is taxable to New York.
How do I allocate the W-2 income on my return?
W-2 State wages are automatically pulled to your New York return based on the information from box 15 of your W-2 form.
If you received a W-2 for a job which you worked some days in New York and some days outside of New York, you must complete NY IT-203B Schedule A - Allocation of wage and salary income to New York State to adjust the State wage amounts.
To allocate this income go to:
- State
- Edit NY Return
- Income Subject to Tax
- NY IT-203B Schedule A
- Add entry
Here you will need to complete all sections for the income to be accurately allocated. This amount will then be allocated based on the number of days worked inside and outside of New York. See our KB article for step by step instructions for allocating the W-2 income.
Allocating Income other than W-2 wages to New York
You must manually allocate all other types of income (Schedule C, Schedule E, Interest, Capital Gains, Unemployment, Etc.) directly on the State return.
To allocate this income go to:
- State Section
- New York part-year or nonresident return (edit)
- Income Subject to Tax
- Enter Income, other than Wages, taxable to New York
What if I have more than one employer to allocate? What if my spouse also needs to allocate?
For each employer or spouse that needs to have the W-2 income allocated, a separate allocation form must be created. Complete a new allocation form by choosing:
- Income Subject to Tax
- NY IT-203B Schedule A - Allocation of wage and salary income to New York State
- + Add Entry