NY Non-Resident Status and NJ Part-Time Resident Status

[McDonaldo11]

For 30 years, I have earned wages in NY while residing in NJ.  In accordance  with NY and NJ respective tax laws, I filed/completed my NY non-resident tax return, followed by NJ return relying on TurboTax (TT) to work up the tax credit/proration to determine my NJ tax allocation. 

However, I just worked the first week of 2021 in New York before retiring on January 8, 2021, no longer earning wages in New York. 

Additionally, I moved to South Carolina and gave up my New Jersey residence in May of 2021, resulting in a part-time resident status for NJ and South Carolina each for the 2021 tax year. 

Accordingly , I have the following questions:  

(1) The New York TT work-up uses the federal income developed for the full tax year, with most of the income consisting of passive/unearned income (Pensions, IRA Withdrawals, Annuities, Dividends, Interest etc.).  Do/can I make an adjustment to the New York income (by means of a  "Subtraction" from the total [full year] federal income) for all the unearned income that was paid to me after January 8, 2021? Or in other words, only reporting unearned income paid to me within the first 8 days of January, 2021 - my last day of work before retiring  and earning wages in New York? If not by means of a subtraction from the federal income as reported on the federal return, is there another way to adjust and/or reflect  the actual New York income in 2021? 

(2) For my NJ and South Carolina part-time resident returns, I determined the unearned/passive income made/paid out while residing in NJ and South Carolina each/separately. Is this correct? 

I welcome and appreciate expert advice/replies.  Thank you. 

[ErnieS0]

The only income taxable to New York is your wages.

Here's how to allocate your W-2 wages:
 

1. In New York, continue to New York Income Allocation
2. Say No to Were all of your wages/or self-employment income earned in New York State?
3. Tap Edit on your job in Your Form W-2 Summary
4. On Allocate Wages to New York, choose either Allocate by Number of Days or Allocate by Percentage (percentage is easier)

TurboTax will also ask how much of your other income is New York source income. Enter $0 for each category.

You can claim a credit on your NJ return for tax paid to NY.

You are correct in splitting unearned/passive income to New Jersey and South Carolina. You care only taxed on amounts you received while living in each state.

[McDonaldo11]

Thank You!!!! Very much appreciate your sound advice and instructions.

With kind regards,