I moved from NY to PA at the end of September, 2021, but I continue to work for my employer in NY. I did research on this forum and found that i need to do the NY part-year resident first, then the PA part-year resident. I'm running into some trouble on what to do with my income and how I declare what is taxable by each state... the various things i've tried come out to the SAME answer, but i want to make sure i've done it right and don't end up with an audit.
Options:
When i go into my income for PA, turbotax carries over my income from the federal and asks whether the amount is taxable in PA. I can either
1.) say the entire amount is not taxable by PA,
2.) the entire amount is taxable by PA, but in the credits section i claim credit for the tax paid to NY, or
3.) "i need to make an adjustment to the taxable amount of income"... then adjust proportionally for the amount i earned while living in PA, then claim the tax credits paid to NY.
Again, they call come out to the same answer for both my NY and PA returns, which makes sense, as I shouldn't be double taxed. I am currently using option 3...
however, if that's correct, then in the tax credits section where it asks if there's any double-taxed income from NY, do i put in the entire amount from my W2, or only the proportional amount? Seems like it doesn't change the answer, but again, i just want to do it correctly.
or maybe there's an option 4? 🙂
