Hi, I am a IL full-time resident telecommuting to New York (due to the Convenience of Employer rule). Hence, I am paying full NY taxes and claiming a credit on my IL return (I am making 0 income in IL).
I do have a -3k capital loss carryover and about 1k in qualified dividend income, for a total net of -2k that I was hoping to apply against my NY income. However, I am now under the impression that because I am a full-time IL resident, I can only apply this -2k of income against my IL returns (where I have 0 income anyway). So while I still pay NY taxes for the wages earned while telecommuting, I cannot subtract the 2k from that income earned because that would be allocated to my state of residency. And I guess this would go to waste as there is no income to net against in my IL return.
Is my understanding correct? Thanks for the help!
