Hi Irieland, thank you for joining the "Ask the Experts: Moving" special forum today. I am happy to assist with your questions.
You moved from NY to CO on 6/20/2021.
From 1/1/2021 - 6/20/2021, you are a NY part year resident, reporting what you earned during this period to NY tax return.
From 6/20/2021 - 12/31/2021, you are a CO part year resident, but also a NY nonresident. Due to the telecommuter rule, this period income is reportable/taxable to NY tax return, and at the same time, taxable to your CO part year tax return.
My primary office is inside New York State, but I am telecommuting from outside of the state due to the COVID-19 pandemic. Do I owe New York taxes on the income I earn while telecommuting?
If you are a nonresident whose primary office is in New York State, your days telecommuting during the pandemic are considered days worked in the state unless your employer has established a bona fide employer office at your telecommuting location.
There are a number of factors that determine whether your employer has established a bona fide employer office at your telecommuting location. In general, unless your employer specifically acted to establish a bona fide employer office at your telecommuting location, you will continue to owe New York State income tax on income earned while telecommuting.
https://www.tax.ny.gov/pit/file/nonresident-faqs.htm#telecommuting
To prevent double taxation, you can claim "credit for taxes paid to other states ," in this case, credit for NY taxes paid in CO part year tax return. TurboTax program will do the calculation. However, NY tax paid won't come through completely as credits on CO tax return because NY tax rates (4% - 8.82%) are much higher than CO flat rate of 4.55%. You also have New York City tax to consider.
https://answerconnect.cch.com/document/jyc0109013e2c83c2542d/state/explanations/new-york-city/nyc-ta...
Based on the above, you will need to file CO part year return, but probably will not have a large balance due because of the credit.
Hope this helps.
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