Worked remotely and lived in NYC and NC in the same year- NY full time resident or NY part time resident and NYC city tax allocation

[hellotax1111]

Hi 

I lived and worked remotely in NYC for 10 months and lived and worked remotely in NC for two months. Turbotax is recommending that I change my residency to NY full time resident. I don't know why and I don't want to be taxed twice.

-Can I confirm I would be a NY part time resident?

-How can I make sure I'm not going to be taxed twice?

-Would I allocate the income to NYC city tax based on how long I lived in the city (10 months) or would it be 100% and why?

-If I own a rental property in Illinois (never lived there in 2024), and am filing a non resident tax for Illinois, does any of my rental property income need to be allocated for the NYC property tax if I made the rental property income through the year in Illinois (not in NYC)? I don't think so but making sure. Only money made in NYC is subject to the NYC city tax right?

[SharonD007]

Based on the information that you provided, you are a part-year resident for both New York and North Carolina.  To file correct state returns, delete your state returns and start over.

 Review your entries in the My Info Section to ensure that TurboTax will create the correct part-year tax returns. 

1. Open TurboTax and select My Info
2. A Personal profile summary screen will pop up
3. Select Revisit by your address
4. Scroll through the screens to help ensure that you have the correct answers for your state of residence and choose that you lived in another state. A new section will appear asking for your previous state of residence. Select the other state that you live in.
5. Scroll down to Other State Income and select Edit
6. Check your answer for Did you make money in any other states? Answer the questions and select Continue.

After you complete your federal tax return and you move to the State Taxes sections, both of your part-year state returns will be listed.   Prepare the state that you moved from first, then the state that you currently live in.

Please visit this TurboTax Help articles How do I file a part-year state return? and How do I allocate (split) income for a part-year state return? for further explanation.

[hellotax1111]

Thank you Sharon, Trying to file today to save on the filing price increase

I forgot to tell you that my W2 witheld NC taxes since my address was NC for all of 2024 and I plan to keep it that. way for next year also. So my W2 has my NC address, my company has a tax address in both NY and NC and I lived 10 months in NYC and 2 months in NC last year working remotely but I am renting/living in NYC at the moment and just going back to NC for visiting.  

I saw there is something about NY convenience of employer rule not sure if that has anything to do with this. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

-Can I please clarify for my situation last year in 2024 which of the following you are recommend I file and how much of the income to allocate to each state when I file in order to get the tax credit that I paid to NC on the W2 (since my W2 had NC for 2024 and I only lived there for 2 months in 2024)? I'm trying to file by today to save on the filing increase. 

-a part year NY return and a nonresident NC return? 

a part year NY return and a part resident NC return? allocate part to NY and part to NC

-a part year NYC return, part year resident NC return and a nonresident NC return? 

-full year NYC resident turn and nonresident NC return? allocate my income fully to nyc and $0 to NC

My token number is 1297265. Is it correct at the moment?

[RobertB4444]

The first one - a part year resident return for each of the two states.

@hellotax1111 

[hellotax1111]

thank you 

-Are you or someone able to confirm if in the token I sent in the last message I gave it correct so I can submit today?

-Also do you know why it says "non-resident" by my NC return even though I mentioned I am a part resident?

-Even if I rented an apartment in NYC for all of 2024, I would still be a part time resident of NY if I only lived and worked there for 10 months right?

-Hypothetically, for future reference, would the income that I earned from my employer while working remotely in NC for 2 months only have been NY source income if my employer didn't have a tax location in NC (which is not the case since the employer has employees in both NY and NC although no actual office in NC anymore)

[RobertB4444]

I don't see a token anywhere in this thread.

The North Carolina return has a schedule for Part Year Residents and Non-Residents.  It may be that the schedule is just showing both.  Or it may be that you need to start the return over because it is a non-resident return.

@hellotax1111 

[hellotax1111]

Yes the token number is in the first reply to Sharon at the end. 

Here is another token:

My Token number is: 1298764 using online turbotax Premier. 

The taxable income for NC keeps reverting to the full NC income when I go to file and review even though I changed it to the allocated income so I the NC refund is not calculating correctly.