NY Part Year Resident

[jsieger]

With COVID, split my time between NYC apartment and townhouse in PA.   Permanent domicile is PA but place of abode in NYC available for full year.  Was physically in city only 109 days so would think Part Time.  Question is how to input in Turbo given back and forth schedule.   

[MaryK4]

You will file as a New York nonresident.  The "back and forth" does not mean you changed domicile and you said you only spent 109 days in New York so you are not a resident for income tax purposes.  You will report the income from NY sources on the NY nonresident return and all income on the Pennsylvania return.

NOTE: If your employer is based in New York or Pennsylvania, you may have to report all your income in both states if the "convenience of the employer" applies.  

Pennsylvania also has a special COVID rule if you telecommuted specifically due to restrictions and your normal office in New York.

[jsieger]

Just one clarification.  I have townhouse in PA for permanent domicile but I also own an apartment in NYC that would be place of abode by NY tax rules.  Still not part-time resident?  Thanks.

[ToddL99]

If your "permanent domicile" is PA, then you were not a part-year resident of New York.

@MaryK4 's comments and instructions were accurate - you will report the income from NY sources on the NY nonresident return and all income on the Pennsylvania return.

Domicile is a person’s permanent place of dwelling.  It is a legal relationship between a person and a locality.  It may or may not be of same meaning as the term ‘residence’.

The concept of domicile has different meanings in different context.  For purposes of jurisdiction, “domicile” means a legal residence which is the place where a person has fixed dwelling with an intention of making it his/her permanent home.

Domicile is a combination of two factors namely, residence and intent to remain. 

[jsieger]

Thanks.  I have input as non-resident but am doing something wrong.  Software shows no NY taxable income and a 100% refund of tax withheld.  I put in number of days I was in NYC.  Maybe checking wrong box on page where it gives 4 options for allocation?  Other non-employment income I am showing in PA.  Not doing allocation properly.

[AmyC]

NY taxes all NY source income. Which means if you worked the job all year, you would have NY tax all of it and PA give you a credit for tax paid to NY.

If the company is located in NY and PA, then wages would be split with your allocation and may already be split on the W2.

If your wages are PA, then you only pay NY for the days there.

You will need to prepare the states in a special order. You may need to delete both states and begin again.

1. First, prepare your non-resident NY  return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
2. THEN prepare your resident state PA return and it will generate a credit for your income already being taxed in the non-resident state.
3. The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

[jsieger]

Thanks.  I think I need to start over.  I bought Premier download product.  How do I clear and start over?

[DianeW777]

No, you do not need to clear and start over. In the TurboTax CD/Download version you can simply close your return and start a new tax return. Be sure to change the name of the file you no longer want to use.

You have the ability to create different scenario returns if you want as well.  There are several options provided by @VolvoGirl as well and posted below for your convenience.

1. "You can delete a tax return from within the TurboTax Windows Desktop Program on the very first screen after starting the program or go to File-Open. Click on the large square icon representing the file you wish to delete (avoid clicking the blue "Continue" button). Then just hit your delete key and answer the prompt.
2. OR Start the program and on the first page click the blue Find A Tax File link at the bottom of the box. Then in the list that pops up you can right click on the file and choose delete.
3. Or you can delete it from Windows.  The tax files end in .tax2017 and should be in your Documents folder and then in a Turbo Tax subfolder.
4. Or just start a new return, go to FILE - NEW and ignore the wrong one."