Hey! As subject states I moved from NJ to NYC mid-way through the year but still work in NJ. Most questions I looked up described the opposite scenario of moving from NYC to NJ or people that worked in NYC throughout. I was wondering the order to fill the state returns in and which one is the one to which the credit applies. As things currently stand I'm owing a chunk to NYC despite applying a credit from the taxes paid to NJ (not sure I'm using the right amount?). Would appreciate any help! Thanks in advance.
Since you moved during the year, you will file a Part-Year return in New Jersey (which is technically a resident and a nonresident return) and a Part Year return for New York. On the New Jersey return (complete New Jersey first), you will allocate the income as resident and nonresident.
Then you will do the Part-Year New York return to get the credit for taxes paid to New Jersey- just make sure you have the nonresident NJ income included. And of course, you must pay New York City tax for the time you were a resident. With the credit, they amount you owe to New York state should be pretty close to your credit but the NYC tax adds a bit if you did not have NYC withholding.
So when I fill the NY return I would use the amount next to "Total payments"? As the amount to credit?
And when filling the credit part I also get asked the following:
Yes, if you only paid New Jersey tax on your income, the Total Payments under New Jersey Withholding would be the amount of tax credit for New York (they should be the same amount).
However, your 'New York Total' should be only the amount earned while you lived in New York. 'Portion taxed by New Jersey' would be the same amount (if you only paid tax to NJ on your income).
In the New York interview, TurboTax should display your Federal income and ask you to fill in the amount that belongs to New York.
If this is not evident from your W-2, you may need to do some calculation to determine the amount you earned while you lived in New York to enter here.
Click this link for more info on Allocating Income as a Part-Year Resident.