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fernsrenato28
Returning Member

Claim NYS credit for taxes paid in California - part time resident

I moved from califronia to new york. I'm filing a part time resident for each state. However when I moved my payroll didn't withhold for new york until the the new year of 2024. I moved Oct 1 to NY from CA.

I'm checking to see if its it allowed to claim tax credit when the tax owed is less than tax payed ? I got a refund in california since I overpaid taxes for income earned in NY, but when filing for NY I have massive tax bill and i want to offset that with the taxes already paid by california for that specific NY income

 

However getting and error in turbotax that Taxes paid must be lower that taxes owed 

 

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7 Replies
TomD8
Level 15

Claim NYS credit for taxes paid in California - part time resident

Did you work in one of those states and have income from the other?  If so, which of the two states is your main, primary home - your domicile in tax terminology?  If you have to pay taxes in two states, then in TurboTax you must complete your non-resident state return before you do your home state return in order for both returns to be correct.

 

Or did you literally move from one state to the other during the tax year?  If so, which is your "new" state of residence?

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
fernsrenato28
Returning Member

Claim NYS credit for taxes paid in California - part time resident

I moved from califronia to new york. I'm filing a part time resident for each state. However when I moved my payroll didn't deduct from new york until the tend of year. I moved Oct 1 to NY from CA.

 

Hence trying to ensure no double taxation here

TomD8
Level 15

Claim NYS credit for taxes paid in California - part time resident

Did you continue to work for your California employer after your move to NY?  If you did, and if your work after the move was entirely done remotely from NY, then your income after the move is not taxable by CA.  It is taxable only by NY.  In that situation you would not have income taxed by both states, and you would not be entitled to an "other state credit".

 

CA taxes non-residents only on CA-source income.  Income earned from work actually (physically) performed within New York is NY-source income, regardless of the employer's location.

 

W-2 income is "sourced" where the work is actually performed.

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
fernsrenato28
Returning Member

Claim NYS credit for taxes paid in California - part time resident

It’s the same employer. I just happened to move offices from the two states. My work was withholding for CA for trailing RSU income while it vested when living in NY. Hence wanted claim these CA credits for NY

TomD8
Level 15

Claim NYS credit for taxes paid in California - part time resident

OK - you should claim the "other state credit" on your NY tax return, not on your CA tax return.   Your compensation for the vested RSU's would be taxable by both states, so it's only the tax you paid to CA on that income that you can claim on the NY return.  All the income you earned after becoming an NY resident is taxable by NY.

 

When you file two part-year resident state returns as you must do, TT recommends that you complete the former state's return before you do your current state's return.

How do I file a part-year state return? (intuit.com)

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
fernsrenato28
Returning Member

Claim NYS credit for taxes paid in California - part time resident

Thanks!

When I am attempting to claim credit for my NY return. The tax computed by california and the taxes paid by me should be pull from my California return? Or do i need to manually figure the portion of the california tax and payment that was specifically for the time window when I was in NY?

 

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TomD8
Level 15

Claim NYS credit for taxes paid in California - part time resident

Tax withheld from your pay is "tax paid by you."  An "entity" means some other tax-paying entity, such as an estate or trust.

 

See the instructions for Part I of the Form IT-112-R booklet as to what California income to enter.  Note in particular the instructions for Line 24.  I think you'll have to do the calculating yourself.

 

Remember that any portion of your income that you earned by working remotely from NY is NOT eligible for the credit, because it is not taxed by both states.  It is taxed only by New York.  

 

If you have excess CA withholding after completing your CA return, the excess will be refunded to you by CA.

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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