Not paying NY Tax

[workoutmom]

My son worked in Ct. in 2018 and earned $10,400. This was not subject to local taxes. Similarly, he has NY State income of $806, investment income of $589, he has a NY state tax liability of $350 and zero for Connecticut. We are wondering why he owes NY and nothing to CT. Please advise. Thanks.

[DanielV01 · Accepted solution]

The general law is that, as a NY resident and a CT nonresident, CT may tax the income he earns in CT, and NY may tax all of his income no matter where he earned it.  

In your son's case, however, he does not need to file a CT return if $0 CT tax was withheld.  This is because if he earned less than $15,000 of total income (which seems to be the case), he does not have a filing requirement for CT and his tax in CT is $0.  

However, NY requires your son to file because he earned more than $3100 as a dependent single filer.  They will tax his income above that amount.

[workoutmom]

Thank you for your quick response. This explains clearly what happened.

[DanielV01]

You are welcome.