I moved to CA from NY on 12/31, 2021 and lived in CA the entire year for 2022. However, I still had both NY and CA on my W-2. I went back to check my paycheck and it shows the very first 2 paychecks of 2022 are counted towards both NY and CA state tax taxable wages. My assumption is that I might have changed my address a bit slow after I moved to CA, thus resulting in the first 2 paychecks counted towards both states.
When I look at my W-2, I think for 2022, I only paid tax towards CA. The state wages/tips box (BOX 16) for CA is a bit less than the federal wages/ tip amount (BOX 1) and the state income tax for CA is based on the BOX 16 amount. However, the state wages/tips box (BOX 16) for NY is the same as the federal wages/ tip amount and the state income tax for NY is 0.
Do I still need to file taxes for both states even though I never lived in NY for the entire year and my company is also located in CA? If so, what amount should I put down for each individual state wages, tips?
It depends. If you moved to California at the end of 2021, you still may have some New York income.
Income earned from California employment but paid out later is still considered California-source income such as accrued vacation, sick time, bonuses, or stock options. However, if you stayed with the same company, you are unlikely to have vacation or sick time payouts.
It’s also possible your payroll was slow in updating, which is why you have NY wages.
NY requires employers to report all wages in Box 16 so unfortunately, you will have to file a NY return. Otherwise, NY will assume your whole Box 16 amount is NY income and send you a large tax bill.
File a NY nonresident return and report either $0 or some wages (depending on whether you earned any NY income).
The New York section will ask you whether all your income was earned in NY.