- quote -

New York, like many (but not all) states, figures the NY tax
as a percentage of the tax you would pay were you a
full-year resident. That way, they benefit from the higher
marginal rates.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Per the IT 203 instructions, when one spouse is a
nonresident with NY source income or a part-year resident,
and the other spouse is a full year nonresident with no NY
source income, and they file a joint federal income tax
return, they must file a joint return for NY. The NY form
calculates the tax as if both spouses had been residents for
the entire year, and then prorates the tax by the ratio of
NY income (e.g., your wife's NY earnings) to total income.
The result is to tax her NY source income at the same
average rate that would have applied if you had both been
full year residents of NY.

The only way you can file separate returns for NY is to file
separate federal returns.

Katie in San Diego
The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

My wife lived in New York for about half of 2004 and earned
about $25 K. She lived in another state for the rest of the
year, and I did not reside in NY or work in NY during the
year. Her marginal income tax rate in NY would be low, based
on only her NY income, but it would be much higher if based
on our joint income for the whole year. What determines
one's marginal state income tax rate -- the income in that
state, or the overall income of both spouses in all states?
Is the answer specific to New York or general to most/all
states?

I am trying to determine how much we would save in taxes by
contributing to the NY 529 college savings plan, for which I
believe New York offers an income tax deduction. Thanks.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->