ErnieS0
Expert Alumni

State tax filing

New York residents are taxed on income earned everywhere. It's the same for any other state.

 

That's why you can claim a credit on double-taxed income.

 

Everything is taxed, but the credit is subtracted from your tax liability. New York's tax rate is generally higher. Most people don't get 100% credit because NY only gives you credit for the tax you actually paid to the other state, not the NY tax rate.

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