NY gambling deduction for NJ earnings/NJ resident
Hi, I'm a NJ resident, filing in NJ, but have some W-2 wage income in New York, so I need to file both states. I also have gambling earnings in New Jersey, but fully offset by losses (as per the federal level). For color, because of reporting and not actual earnings, I earned w2g's to the tune of $7mm....not true income as it's actually just activity and offset to zero when netting true losses. Now when I do my NY state tax, the standard way looks to take a factor of my NY state income by my federal AGI (pre-gambling deductions). But because of the federal AGI pre-deduction, it is putting me in the second highest bracket for NYS despite my actual NY income being nowhere near that. Shouldn't deductions come into play here? I know you can add deductions in the IT-196, row 29, but can that only be done for losses in NY or federal/NJ losses? Just seems weird that i would be put in the highest bracket for earnings not actually made. Thank you all in advance for your help, Johnny
