File a part-year Washington D.C. income tax return and a part-year New York income tax return.
D.C. will tax you on the income you earned while you lived there. D.C. considers anyone who maintains a place of abode within the District for an aggregate of 183 days or more during the taxable year to be a “statutory resident,” whether or not such individual is domiciled in the District. D.C. will give you a tax credit on taxes paid to New York while you lived in D.C..
I’m not sure about your New York situation. It sounds like you moved permanently to D.C. But it also sounds like your employer is still withholding NY tax.
Assuming NY tax was withheld for the whole year, you would be taxed on your whole income. File a part-year NY return and divide your income.
- On the Date of Last Move screen, select On December 31, 2020 - Did not live in New York State but received income from New York State sources while a nonresident.
- New York resident income is income earned while living in NY.
- NY nonresident income should be the rest and the two amounts should equal Box 16 pf your W-2.
NY has said if your primary office is in New York State, your days telecommuting during the pandemic are considered days worked in the state unless your employer has established a bona fide employer office at your telecommuting location.
Talk to your employer. If you moved permanently to D.C. perhaps they should be withholding D.C. tax instead of NY.
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