If you
moved during the year from NY to NJ but all income is NJ wages, this wage
income will be considered NJ-source income and will be taxed in both NY and NJ (even for
the time you were a part-year resident of NY).
Since
you were a part-year resident of NY during 2016, you will need to file a
part-year NY state income tax return to report earnings from all sources
(including your NJ -source wages) for the part of the year that you were a
resident of NY.
You
will need to divide your wages based on the time in each state and report
these amounts separately on your part-year resident state income tax
returns of each state.
Additionally, since some of your income while a part-year resident of NY is considered
NJ -source income, you will also need to report your NJ-source income
(while you lived in NY) on your part-year NJ resident state income tax return.
It may
seem like you are being double taxed on your NJ- source income by needing to
include it on both your part-year NY and NJ state income tax returns but you
will be able to claim a state tax credit on your NY part-year return for taxes
paid on your NJ part-year state income tax return related to your NJ
-source income earned while an NY part-year resident.
You
will want to work on your NJ part-year resident return first so that you can
determine the amount of state tax credit you will be able to take on your NY
part-year state income tax return.
NY taxes all the
income reported when calculating NY state income taxes (whether resident,
part-year resident or nonresident) but you will only be required to paid a
portion of the total NY state income taxes calculated (your percentage of the
total NY tax that relates to your NY source income only)
Each state has a
different ways of calculating state income taxes.
The way that the NY
state income tax return works is that NY looks at all of your income from all
sources and generates a total NY state income tax on all income. When NY
is determining the actual NY state income taxes that you owe, NY multiples
the total NY taxes on all income by the percentage of NY source income over all
source income. So if all your income is $10,000 but NY source income is $8,000,
NY will calculate the NY state income tax on $10,000 then multiply this
total tax by your NY source income over total income ($8,000/$10,000) to get
your percentage of NY state income taxes on your NY source income. So in this
instance, your NY state income tax liability would be 80% of the total amount
of NY taxes generated (on all income). That is why all your income is
being reported on your NY state tax return.
You can preview your
NY Tax summary to see what portion of the total taxes for NY you are actually
paying.
To preview NY Tax
Summary:
- TurboTax Online sign-in,
click Here
- Under Tax Timeline, click on
Take me to my return
- Go to "My Account"
> "Tools"
- Under the Tools Center,
select "view tax summary"
- Select "NY Tax
Summary"
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
