NY & PA Part-Year Resident

[SonofaBish]

I moved from NY to PA at the end of September, 2021, but I continue to work for my employer in NY.  I did research on this forum and found that i need to do the NY part-year resident first, then the PA part-year resident.  I'm running into some trouble on what to do with my income and how I declare what is taxable by each state... the various things i've tried come out to the SAME answer, but i want to make sure i've done it right and don't end up with an audit.

Options:

When i go into my income for PA, turbotax carries over my income from the federal and asks whether the amount is taxable in PA.  I can either

1.) say the entire amount is not taxable by PA,

2.) the entire amount is taxable by PA, but in the credits section i claim credit for the tax paid to NY, or

3.) "i need to make an adjustment to the taxable amount of income"... then adjust proportionally for the amount i earned while living in PA, then claim the tax credits paid to NY.

Again, they call come out to the same answer for both my NY and PA returns, which makes sense, as I shouldn't be double taxed.  I am currently using option 3...

however, if that's correct, then in the tax credits section where it asks if there's any double-taxed income from NY, do i put in the entire amount from my W2, or only the proportional amount?  Seems like it doesn't change the answer, but again, i just want to do it correctly.

or maybe there's an option 4? 🙂 

[SonofaBish]

An additional add-on question...

As i was finishing up my taxes, it asked if i want to make quarterly tax payments to PA.  I don't believe i do, as i will continue to be taxed by NY.  While it seems like PA and NY are not reciprocal states, surely they have some sort of communication so that PA doesn't get stiffed for the tax revenue... NY's state income tax is double PA, so they still get more than their fair share.

[JohnB5677 · Accepted solution]

You were a part-year resident of NY and moved to PA, again as a part-year resident.  You worked in NY the entire time.

For the amount owed in PA you should select option 3.) "I need to make an adjustment to the taxable amount of income"... then adjust proportionally for the amount I earned while living in PA, then claim the tax credits paid to NY.

For your second question, you will pay tax in NY for 100% of your income because you worked there.  You will report the proportional amount in PA for the time you lived there.  You'll then get a credit for taxes paid in NY for that proportional amount.

If you have income other than your wages from this job that are not taxed, it will be taxed in PA.  If this is a significant amount you may choose to pay estimated taxes to PA.  You do not have to pay PA estimated taxes on the income you earned in NY.

[JohnB5677]

You were a part-year resident of NY and moved to PA, again as a part-year resident.  You worked in NY the entire time.

For the amount owed in PA you should select option 3.) "I need to make an adjustment to the taxable amount of income"... then adjust proportionally for the amount I earned while living in PA, then claim the tax credits paid to NY.

For your second question, you will pay tax in NY for 100% of your income because you worked there.  You will report the proportional amount in PA for the time you lived there.  You'll then get a credit for taxes paid in NY for that proportional amount.

If you have income other than your wages from this job that are not taxed, it will be taxed in PA.  If this is a significant amount you may choose to pay estimated taxes to PA.  You do not have to pay PA estimated taxes on the income you earned in NY.