I moved from NY to CA for a new job. All of my moving expenses were paid in Dec 2016; however, I did not live in CA until 2017. Can I deduct this on my NY state return?

[MiriamF · Accepted solution]

No, you may not deduct your moving expenses from your New York income. The instructions for filing NY form IT-203 on page 24 state:

Include moving expenses that you incurred as a nonresident only if you moved to a new home because (1) you changed job locations in New York State, or (2) you started a new job in New York State. Do not include moving expenses you incurred if your new job or new work location is outside New York State.

You didn't ask this, but the regulations for federal taxes say that you can choose to deduct moving expenses in the year your employer reimburses you if:

You paid the expenses in the year immediately after the year of reimbursement but by the due date, including extensions, for filing your return for the reimbursement year.

So, for the IRS, if you were reimbursed in December 2016 but moved in January 2017, you may deduct your moving expenses on your 2016 tax return. For more information, see Publication 521, Moving Expenses, page 12.

[ScottM1]

Thanks for your help. One comment: I'm a full year New York resident, completing an IT-201 instead of an IT-203. I did not enter my new state until 2017. In the IT-201 instructions it appears to take adjusted federal income as is and I cannot figure out a better way to account for the moving expenses in the return. There is no language about it being applicable to NY state for this return.

Thanks!

[MiriamF]

Interesting issue. It sounds like the only way you can eliminate the deduction is to file form IT-203, even though you were a full year resident.

[Helsin]

Scott, what did you finally do with your situation last year? I am in a similar one - I left my work in CA and started working in PA but my domicile was in CA only for the whole 2017. So I am resident for CA and non resident for PA for 2017. My new employer paid moving expenses and now I am wondering if I can deduct my moving expenses from federal and CA but not PA (PA does not allow nonresidents to deduct moving expenses). Your feedback will be very helpful. Thanks.