You are not a deemed resident because you moved permanently to South Carolina. A "deemed resident" is someone who has two houses.
You are not able to claim the other state tax credit for NY because your NY double-taxed income is the portion you earned while you were living in South Carolina. And SC is giving you credit for tax paid to NY.
Suppose you made $100,000 ($50k NY and $50k SC), SC taxes $0 while you lived in NY. When you moved to SC, NY taxes $50k and SC taxes $50k. SC is giving you credit for the tax you paid on $50k while you lived in SC. So you can't claim a credit on the NY return for SC tax on the same $50k. That's what's showing on IT-203.
NY $50,000 $50,000
SC $00,000 $50,000
Option 2 is generally better than Option 1. You can chose to file (1) as a Resident OR part-year resident filing as a resident or (2) as a Non-resident OR part-year resident filing as a non-resident
You can schedule a call and one of our Live Tax Experts can review your tax returns with you.
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