Allocation of part-year income to NY

I lived in NJ from January 1st to July 31st 2020 and was working a job located in NY (for a company based in IL).  From August 1st I was transferred to TX working in the same role.  I am filing a non-resident NY return and a part-year NJ resident return. 

 

My employer changed my tax residency correctly on the payroll side (I stopped paying NY income tax after I moved) and has issued W-2s for NY and NJ.  The NJ income appears correct as it reflects the income earned while I was a resident there, however the NY return shows the full-year's income including a bonus I received in December.

 

My question is how should I treat the NY income?  I'm assuming I should allocate my full year's income (including the bonus) based on the number of days or percentage of the income earned there. 

 

Thanks in advance.

ErnieS0
Expert Alumni

State tax filing

New York requires employers to report income earned everywhere on the W-2. The New York section of TurboTax allows you to allocate your wages and report the correct amount.

 

You only have to pay tax to NY on income you earned while living in NJ.

  • In New York, go to New York Income Allocation
  • Say No to "Were all of your wages and/or self-employment income earned in New York State?" 
  • Say NO to Did you have any New York State Wages?
  • On Tell us about your New York resident income enter the amount you earned while living in NJ and working in NY
  • On Tell us about your New York nonresident income enter $0
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State tax filing

Thanks for the response.

Am I correct in assuming that the bonus paid in December while I was a resident of TX would need to be apportioned to NY also, or would I only need to report income that was actually received while I was a resident of NJ?

DMarkM1
Expert Alumni

State tax filing

You are correct.  For NY the bonus is allocated the same as the wages.  You will use the total pay (including bonus) and allocate by days or percentage to NY.  You should claim a credit on your NJ PY return for taxes paid to another state for the NY taxes. 

 

   

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