Non-resident in NY. How to report Dividend and interest income?

nonres

I live in NJ and work at NY. I also have dividend and interest income from brokerage accounts. I assumed that I only have to report NY-sourced income (work salary) in NY's state return, but when I plug in the numbers in freetaxUSA, it automatically uses "NEW YORK AGI - FEDERAL AMOUNT" instead of the "NEW YORK AGI - NEW YORK NONRESIDENT AMOUNT."

The federal amount includes the dividend/interest income, which I thought was not taxable in NY since NY is not my home state. Am I thinking it wrong or do I have to do something to fix this?

KristineS

Hi nonres,

Thanks for your question. We have many customers with your same situation living in one state (NJ) and working in another (NY). FreeTaxUSA will correctly place your income where it needs to go on each return. You may however, need to tweak your entries in the software program.

All income is first reported on the federal return. From there, income flows onto each state return where adjustments may need to be made, including for instance, taking a credit for taxes paid to another state, or changing the amount of income made in a state during a time of residency vs. income made the entire year. In your case, it sounds like you need to exclude the dividends and interest sourced from your NJ brokerage by removing or zeroing them out on your NY return.

Our customer support team will quickly and easily show you how that's done if you would like some help with that.