State tax credit for temprarily working in different state

[4bh1sh3k]

From Jan - Jul of 2020, I lived in CA and had a job located on same state. In August I started a new job in NY while still staying at CA, until I moved to NY next month. So

• Jan - Jul, lived and worked in CA (Job #1), have state tax withheld in CA from my Job #1 W2
• Aug, lived in CA but worked in NY (Job #2), have state tax withheld in both CA and NY from my Job #2 W2
• Sep - Dec, lived and worked in NY (Job #2), have state tax withheld in NY from my Job #2 W2

How do I file the state taxes?

Should I pay NY taxes for Aug - Dec, and CA taxes for Jan - Aug, and request for a CA tax credit in Aug?

Or pay NY taxes for Sep - Dec, and CA taxes for Jan - Aug?

And how much of the Job #2 W2 income goes to each state?

I'm using the TurboTax website.

[SundayInSalem · Accepted solution]

Your income split is correct. Pay NY taxes for August - December, and CA taxes for January - August. You can claim a tax credit on your CA return for the one month overlap where you paid tax to both states, One month of job #2 income goes to CA + all of it goes to NY.

NY taxes telecommuters. NY says, "If you are a nonresident whose primary office is in New York State, your days telecommuting during the pandemic are considered days worked in the state unless your employer has established a bona fide employer office at your telecommuting location."

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[4bh1sh3k]

@SundayInSalemThanks for replying.

After determining my NY residency status as "part-year resident", the website asks me to specify these 2 things:

• Tell us about your New York resident income
• Tell us about your New York nonresident income

Should I fill the first item = earning for Sep-Dec (4 months) and second item = earning for Aug (1 month)?

If I do that, it comes to "Wages Summary" screen that shows California wages as the value from first item i.e. earnings for last 4 months.

[4bh1sh3k]

I meant to write "Wages Summary" screen that shows NY wages. I can't see a way to edit my reply.

[SundayInSalem]

There are two different sections: (1) Your New York wage allocations and (2) Part-year resident other allocations.

The wage allocation comes from your W-2. That should be 100% NY because your W-2 reported four months of NY income.

The Part-year resident other allocations is pulling one month from CA so it will be more than the NY wage allocation. You did that correctly. 

The key is the NY income factor. That should be the percentage of your NY income divided by your total income. In my example I used $3,000 a month (though your salary may have been different switching jobs).

5 months/12 months is 41.67% so the NY allocation is correct and is coming from Part-year resident other allocations not the NY wage allocation.

[4bh1sh3k]

@SundayInSalem  Perfect! Thank you so much.