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I'm a part-year resident in two states but don't know which states 'other state tax credit' to take?

I am filing Part-Year Returns for two states (New York and California)

I moved from New York to California in September, and California is now my new home state.

However, I’m still working for the same NY based employer, but telecommuting. It appears that NY will be taxing income I earned while telecommuting from California as New York nonresident income.

Do I take the ‘other state tax credit’ on the New York or the California return (I’m confused since I was a part-year resident in both)?

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1 Best answer

Accepted Solutions
DanielV01
Expert Alumni

I'm a part-year resident in two states but don't know which states 'other state tax credit' to take?

The other state tax credit is for the California return.  Since both NY and CA are taxing the telecommuting income, NY gets the priority because they are the nonresident state (where the money is being earned).  California will give you a credit for the tax you must pay to NY on the telecommuting income.  You will not need to fill this out in the New York return.

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1 Reply
DanielV01
Expert Alumni

I'm a part-year resident in two states but don't know which states 'other state tax credit' to take?

The other state tax credit is for the California return.  Since both NY and CA are taxing the telecommuting income, NY gets the priority because they are the nonresident state (where the money is being earned).  California will give you a credit for the tax you must pay to NY on the telecommuting income.  You will not need to fill this out in the New York return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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