Since you are considered a full year resident in New York (NY) they will tax you on your income for the year. You can select Suffolk county for 12/31/2022, since the full year action requires a resident return.
Next, you will file the part year resident return with Michigan (MI). Because you are a part year resident and you are being taxed on income by NY that will also be taxed by your resident state of MI, then MI will give you a credit for taxes paid to another state on the same income.
Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state. Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
You can use your MI income divided by the total income to arrive at the percentage of tax on the NY return that is being paid on the same income. Be sure to write this down because you may need to enter this manually on the MI return in this situation. Once you get to the MI return you will enter the income being taxed twice and the tax being paid to NY on that income. At this point the MI return will do the math to see what you credit will be (see rule above).
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