New Residency-Two States to File

[ParkNYC]

Hi, I'm new to NJ taxes and filing two state tax returns. I have a few questions.

We moved in February 2024 from NY to NJ, I know that we have to file bot states returns in 2024, my questions:

1. Should I do first first federal and NY return and then purchase NJ and work on it?

2. How to e-file both states (nonresident-part resident NY and part year resident NJ), same time or Federal and NY first, is there even an option to file e-file state taxes separately from Federal return?

3. Does Turbo Tax automatically calculate income made in each state or there's some kinda worksheet?

4. Do we have to calculate interest income, capital gains and foreign earned income made for each month and allocate to each state according to residency? (2 months NY and 10 months NJ).

Thank you,

[carlyd427]

following

[TomD8]

You will have to file a part-year resident tax return in each of the two states.  This TurboTax help article explains how to do that:

How do I file a part-year state return?

You cannot e-file your state return without your federal.  See this:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/prepare-file-state-return-usi...

TurboTax does not automatically allocate your income (including interest, capital gains, etc.) between two states.  You must do that yourself.

[carlyd427]

Lol yes, I figured I'd have to do Federal as most people do every year. 

What do you mean that they do not automatically allocate my income? Where would I go to do that? 

Thank you for your help so far! 

[TomD8]

@carlyd427 --

@How do I allocate (split) income for a part-year state return?

[carlyd427]

Are you referring to this? 

[ParkNYC]

How to e-file multiple states (nonresident-part resident NY and part year resident NJ)?

Do i have to file federal and NY nonresident together first and then part year resident NJ or Federal return first and both state returns later? I was wondering if there is any particular order when filing non resident-part time resident income taxes.

@TomD8 

[TomD8]

@ParkNYC 

The recommended sequence for completing your returns in TurboTax is:

1. Federal

2. Non-resident state

3. Resident state

When doing part-year resident state returns, TT recommends doing the "old" state return first, before the current resident state.

[ParkNYC]

Thank you @TomD8.

How should I allocate IRA contributions, interest, dividends and my foreign income? Should we allocate those to the main resident state or part year/nonresident return according to time it was paid or received?

Example, we lived in January - February in NYC (Part year resident) and 10 months in NJ.

I contributed to my IRA in February, wife in March, should I allocate those contributions 50% to NY nonresident tax return and 50% to NJ, or allocate to NY state and take credit on NJ return?  I prefer to take IRA deductions on my NY state tax because they can't be deducted on NJ return, but I'll follow the rules.

Thank you,