You should select Allocate by Percentage on the screen that says Allocate Wages to New York, and enter 33 to represent 33% on the next screen.
If you only earned 1/3 of your wages after you became a NY resident, allocate 1/3 to NYS. Because you are a NYS resident for part of the year, you only pay tax on the income earned while you are a NYS resident.
Since you have two state returns to prepare, prepare your MN return first, then your NYS part-year return, this way the credit for taxes paid to MN will properly flow to NYS return.
In Minnesota, part-year residents are taxed on all income received while a resident of Minnesota and on Minnesota-source income received while a nonresident. So you will pay income tax to MN on all the income reported on that W-2.
In New York, as a part-year resident, you are taxed on the income you earned after you moved to NYS and any income you earned from NYS- source while a nonresident.
Since you will pay tax on the same income to MN, so make sure to take a credit on your NYS part-year return so that you are not double-taxed on the same income by two different states.
Remember, as a NYC resident, we also pay NYC income tax. Since you were a NYC resident for part of the year in 2021, you need to file IT-360.1, Change of City Resident Status, to compute New York City resident tax.
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