Double taxation in New York and Connecticut

[Econthree]

My wife and I are retired and all of our income is from stock market investments and IRA withdrawals. We have permanent domicile in New York City and pay full-year income taxes there. We also have a vacation house in Connecticut. We just realized that In 2020, we lived in CT for more than 183 days, thus making us CT residents for income tax purposes. Does this mean that we need to file a CT return for 2020 and get taxed twice on the same income?

Thank you

[TomD8]

You have a situation of dual residency.  You are domiciliary residents of NY and statutory residents of CT.   Therefore you must file as a resident in each of the two states.

You may take a credit on your CT return for the taxes paid to NY, so in effect you won't be double-taxed.  See this reference for details:

https://portal.ct.gov/DRS/Publications/Special-Notices/1992/SN-92-2

[Econthree]

I hope you are right but if CT gives me a credit for the amount of my NY tax, CT will be left with nothing, given that NY taxes are the highest in the country. Note that all our income is from stock market investments and IRAs.