Hi Forum,
I’d appreciate help confirming that I’m handling this correctly.
Background
I moved from CA to NY in December 2021 and stayed with the same employer.
For tax year 2022, I mistakenly reported all income as NY income and $0 CA income.
I now need to amend my NY return to get a refund and file/amend CA to pay tax on CA-sourced RSU income.
W-2 / income details
My W-2 appears to overstate CA wages, since I worked 100% in NY during 2022.
My January paycheck still showed CA state wages, likely because payroll hadn’t updated my location yet. I don’t think this can be corrected now.
RSU allocation matches my records, so no issue there.
I also see a December CA state taxable wage amount on a statement, and I’m not sure where it came from. The only possibility I can think of is my bonus, but that was paid earlier in the year.
My W-2 income consists only of salary, bonus, and RSUs, all from the same employer.
Questions
For CA wages, should I use the CA amount shown in Box 16 of the W-2, or should I use my own allocation/calculation?
I’m leaning toward using the W-2 amount even if it’s slightly overstated, because I’m concerned CA could challenge it later (CA has a 4-year statute of limitations).
I expected NY to fully credit the CA tax I pay, but it looks like the NY credit is lower than the CA tax owed.
My understanding is:
CA taxes me at a higher marginal rate (around 8% over $66k) than NY (5.85%).
CA determines the tax rate using total W-2 income, even though only a portion is CA-sourced.
Is this understanding correct?
I plan to amend NY first, receive the refund, and then amend/file CA. ChatGPT suggested this approach.
Is there any risk in doing it in this order?
For the NY amendment, I’m filing IT-201-X and IT-112-R (CA).
Are these the only NY forms I need?
Can I e-file my NY amended return, or does it have to be paper-filed?
Thank you very much. Sorry for the long questions. Want to make sure I am not missing anything.
