Hi - I'm very confused on how these multi-state income taxes work. Simplistically, I had a NY-based job but moved and established permanent residency in a different state in early 2020. I continued to withhold and pay into NYS taxes but will file for a refund on portion of taxes I was paying into NYC that didn't coincide with when I was living in NYC.
On my SC tax return, I show "SC Gross Income" which is equal ~equal to my 1040 gross income and then I show ~95% of that being taxed by another state, so I pay some small SC taxes (~$500) after applying my NYS credits against SC (SC tax rate is higher than NYS tax rate).
What I'm confused about is, I file NYS IT-203 part-year resident and there's a section for "taxes paid to other states", which looks to be form IT-112-R. Based on that link, I'm eligible given I'm filing as a part-year resident and SC is taxing all my income (but I'm receiving a credit from NYS taxes paid). So my question is, am I eligible to get the $500 as a "New York State nonrefundable credit" which reduces my NYS tax return?
Intuitively, what this does is any taxes I owe to SC would then be a credit to my NYS return which feels great but I'm not sure I can apply credits from NYS to SC tax return and then whatever remains from that resulting return back to NYS as a "resident credit" (it's kind of circular?).
Let me know what you think.
