In that case, your daughter should file a part-year resident return for California and a part-year resident return for New York.
If she has a teaching assistant W-2 from a college in NYC, but telecommuted due to Covid, it would be fully taxable to New York. Per NYS, days worked at home are considered New York work days if the employee’s assigned or primary work location is at an established office or other bona fide place of business of the employer (a bona fide employer office) in New York State. If the employee’s assigned or primary work location is at an established office or other bona fide place of business of the employer outside New York State, then any normal work day worked at home would be treated as a day worked outside New York State. Since the NYC college would be established in NYS, then it is considered New York work days.
Her income would also be taxable to California during the time she was a resident. For the 8 months of California residency, she would get a partial credit of taxes paid to New York so she is not double-taxed.
Unearned income (interest and dividends) generally gets allocated based on where you are living when you receive the income. If it was equally earned throughout the year, you would allocate 8/12 months for California and 4/12 months for New York.
NYS FAQ - Telecommuting
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