I completed my New York Nonresident return, because I work in NY. I am completing my CT resident return. Within the CT return, I am in the allocation section where it is asking about NY. The question is "Below are the amounts that transferred from your NY state return. Verify these amounts represent the income you earned while a resident of CT that were taxed by BOTH New York and Connecticut." It asks the same question for wages, interest, business income, etc. I'm not clear on what it is asking. Is it asking whether an employer withheld taxes already, or if I paid estimated taxes on those amounts?
Note: for us, all employment took place in NY, and appears on this screen under NY.
Interest and Dividends income should be taxed under CT, and are listed as $0 under NY.
Neither. For those items you are to verify that the amounts are the NY amounts of income earned there while a resident of CT. Later you will also get a chance to verify the Ny tax liability on that NY income. There are normally no changes necessary since the amounts transfer from your NY return. However, you may catch an error which you might have made entering data in the NY return; a decimal in the wrong place so it reads 1,000 vice 100 for example.
Since CT can tax all your income regardless of its source, and NY can tax the income you earned by working in NY, all your work income from NY is taxed by both states.