Lived in Multiple States and have Foreign Earned Income

[CSween1]

I lived in NY from 1/1/24 to 5/30/24 then I moved to PA  and established residence from 5/31/24 to 8/31/24 and then I moved to Italy on 9/1/24. I earned income in NY, earned no income in PA, and earned income in Italy. Do I need to file a NY and a PA state tax return? And does the Italy income get reported on a state tax return?   I purchased the NY State Tax Turbo product and  I already had the PA State TaxTurbo product and the income from my federal return was transferred and it shows the foreign income as income for both states.  I see the option on the PA state return to exclude the foreign income but I don't see anywhere on the NY state return to exclude the foreign income. My question is do I need to report the income to the state? And which state should I report the income? 

[Vanessa A]

Yes.  You need to file a NY Return to claim any income earned while a resident there and any income that was NY sourced income.

If you earned NO income while a resident of PA and you have no PA sourced income, then you do not have to file a PA return.  If you worked in NY or somewhere else while a resident of PA, then you would need to claim that income on a PA return.

No. If you permanently left PA and NY and established residency in Italy, then you would not need to include the income on the state returns that is not sourced from the states on your return once you were no longer a resident of PA or NY.

For NY if it was not NY source and you were no longer a resident, you will walk through the steps to make an adjustment to income to remove the Italian Income. 

[CSween1]

Hi,

While in NY I earned New York sourced income and received W-2s for that income. So yes that would require a NY state tax return. This income was earned 1/1/24 to 5/30/24. 

Then I moved to PA from 5/31/4 to 8/31/24. Earned no income from anywhere.

Then I moved to Italy for a short term of 9/2/24 till 7/31/25 so not permanently. Where I will earn income from an Italian University so neither NY or PA sourced income.

 How do I remove the Italian income earned from the NY state tax return?

[CSween1]

What are the steps to remove the foreign income from the NY state return since that income was earned after I moved out of NY.

[DawnC]

When you go through the part-year New York state return, you will be able to allocate all of your income between the two states you resided in.  

How do I prepare part year resident state returns?

How do I allocate income on a part year return?  

[CSween1]

I was able to allocate the income I earned in NY to NY at 100 %. However, I moved to PA for 3 months where I earned no income. Then I moved to Italy where I did earn income. So why is NY state taxing my foreign income when I did not earn it while I lived there nor was NY my state of residence at the time I earned it.  On my NY state return it asks about my W-2 income and whether it is attributed to NY but it does ask about my foreign  and whether it should be NY state income? How do I exclude the foreign income from the NY State tax return

[DawnC]

There is a section titled New York Income Allocation when you go through the NY state return.   It has 3 sections: wages, self-employment, and everything else.   Also, if you are using the desktop software, you can make your allocations directly on the form page titled Alloc Wks.   See my example below.  

The top of the image is the summary screen after going through the return.  If you select ''wage'' allocations, you will see the total amount of all wages earned during 2024.   In the example, only 12K of the total 77K was earned while living in NY.  And of the remaining 65K, none of that was from a NY source.