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llmj38
New Member

I am have been a full time resident of MA, but a portion of my income from MA was taxed by NY this past year. Do I file a separate state return for NY?

The income was earned in MA but because I moved while still working for the same job, they have yet to adjust the tax rate.
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1 Reply
DS30
New Member

I am have been a full time resident of MA, but a portion of my income from MA was taxed by NY this past year. Do I file a separate state return for NY?

It depends.

You may need to file a NY state income tax return to report your NY-source earnings. (NY is one of the few states that will require you to file in NY if you work remotely but the company is based in NY.)

However, if you did not work in NY or if your employer is not located in NY, you will not have to file in NY. (You will only need to include your wages on your resident state income tax return

If you were a full year resident of MA and earned the income in MA but the company you work for is located in NY, you will need to file a NY nonresident state income tax return to report your NY-source income. You will then be able to get a tax credit on your MA resident state income tax return for taxes paid on your nonresident state income tax return. (In TurboTax, this information usually is listed towards the end of your resident state tax return)

You will want to work on your non-resident state tax return first. You will then take a tax credit from your non-resident return on your resident state tax return. (Please note that you will only get a tax credit for your nonresident income taxes paid up to the amount of resident income taxes that would have been paid if the income was earned in your resident state). 

Just follow the TurboTax guide when working on your states (remembering to do your non-resident state return first) and TurboTax will do all the calculations and credits to your resident states return.

Here is additional information about filing in multiple states (select "see entire answer" to view the entire attachment)

https://ttlc.intuit.com/replies/3300797

However, if you move from one state to another during the year, you should file as a part-year resident in both states. So if you moved from NY to MA, you will need to file a part-year resident state income tax return for both MA and NY. This will treat you as a resident of each state only for the days that you lived in that state so that you can avoid being double-taxed.

So for state tax purposes, you will need to divide up your wages based on the time you were a part-year resident of each state. If your employer only withheld taxes from one state, you may owe taxes in the state for which no state withholdings were taken out but you may get a refund in the state where extra withholdings were taken out.

Check below for more information about filing a part-year state tax return (Please select "see entire answer" to see full answer)

https://ttlc.intuit.com/replies/3302008


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