TomD8
Level 15

State tax filing

@Leen1 --

 

Since you must file as a full-year resident of both NY and DC, ALL your income is taxable by EACH state, regardless of its source.  Thus "sourcing" is irrelevant in a dual resident situation.

 

Sourcing refers to the common situation where a taxpayer is a resident of one state but has income from another.  For example, a NY resident who works in NJ (but is not a resident of NJ) would have NJ-sourced income.

 

You can claim an "other state credit" only on your NY return, since NY is your domiciliary state.  This is what the DC tax instructions are telling you.

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.