When did you move to CT? Did you live there for all of 2023? Which state do you actually live in and which state do you work in? "I have moved to Connecticut for my first job from NY.......Do I pay NY tax because I am a NY resident or Do I pay CT tax because I am working in CT?"
If you are a resident of CT and working in CT, then you would only pay taxes to CT. If taxes were withheld for NY, then you would file a non resident return claiming $0 income, but showing your withholdings so you can get a refund of the taxes you paid to NY. You would file a CT return reporting all of your income.
If you are resident of NY and work in CT, then you would pay taxes to both. You would file a CT nonresident return, then you would file a NY resident return and take a credit for the taxes paid to CT on your NY return. You would need to do CT first so you know your tax liability to CT so you can enter it on your NY return.
Basically, whichever state you live in will tax all of your income from ALL sources, just like the federal government does. The state you work in will tax the income you earn working in that state. So you will have to file a nonresident return for the state you work in and pay taxes on that income. Then you will file a return for the state you live in and claim a credit for the taxes you paid to the state you work in.
If you lived in the state for part of the year, the same principal applies, however, you would prorate the wages for the state you lived in. In other words if you worked in CT all year, but lived in NY for half the year and CT for the rest of the year, the amount you earned while living in NY would be taxable to NY even though you worked in CT. All of it would be taxable to CT.
How to File a Part Year Return.
How to file a Nonresident state return
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
