I worked in CA till end of May and joined the NY office of the same employer starting in June till December 31st. TurboTax classified my as Part-Time resident in both the states.
I am having a hard time figuring out how much of my Federal Income should be allocated to NY in the "New York Income Allocation" section of the NY state tax return.
My W2 reports Federal Income of (say for e.g.) 100K of which about 63K are reported to CA in Box 16. As is the rule, for NY the whole Federal Income is reported (100K) in Box 16. I live in NYC, so the city tax is being reported about 56K in Box 18.
I have company RSUs vesting which were granted over the previous few years which vested throughout 2022. This explains why CA wages are so high (even though I left in May) since the vest amount is split proportionally based on the period vesting in CA.
NYC city takes all the income (100% of vest value of RSUs) as taxable income, which probably explains that number.
Now, what do I put down as the NY state wage? If its 100K - 63 (CA state), that would be 47K which is < NYC tax (which causes an error when auditing step later in the flow).
TurboTax has a few options of
1) Allocate everything (not applicable to me)
2) Allocate by number of days
3) Allocate by percentage
4) Don't allocate.
My intuition is that NY wage should be :
a) regular income wages earned from June - December
b) pro-rated vest value of RSUs received from June - December, where pro-ration would be according to the time spent in NY.
Won't this just be Federal Income - CA wages ? - but this is less than NYC city tax, as the city tax doesn't have the proration for RSUs ?
