If I lived in CT and worked in NY, do I still allocate "earned" income for CT? Do I qualify for a tax credit if I lived in CT and worked in NY?

[leighcockburn]

If I file a NY and CT tax return, should I still apply the tax credit for living in CT but working in NY?

[DS30 · Accepted solution]

Yes, You will get a credit on you CT resident tax return for your NY nonresident state taxes.

You will need to file as non-resident for NY (for your NY source income only). You will also need to file a CT resident state tax return (for all income from all sources including NY). You will get a state tax credit in CT for the NY state taxes the your paid on your nonresident NY state tax return.

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

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 more answer" to view the entire attachment)

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