My daughter lives in Hoboken and works for a Company based in New York. Until March 15, she commuted into New York City, Starting on March 16, she worked remotely from Hoboken for some New York Clients and some clients based in other states.

Her W-2 treated her income as if all was earned in New York so New York State and New York City taxes were withheld. No New Jersey Taxes were withheld, even though some of her clients are based in New Jersey. She was eligible for an IRA contribution and contributed to a Traditional IRA. Can she deduct the IRA contribution on her New York taxes? I cannot find a line item for an IRA deduction on the non-resident return.

Following is a general question, which may impact the amount of her IRA deduction (if one is allowed). Since some of her clients are New Jersey based, should my daughter allocate the percentage of time working for New Jersey clients? This was about 20% of her billable hours? This would reduce New York State taxes, but increase New Jersey taxes. (This allocation would result in a Net Tax savings.) If this approach is followed, would this reduce the IRA deduction she could take for New York State.

Sorry this is so complicated. I hope I explained our questions sufficiently. Appreciate any help the experts can provide!

Andy