It depends on the state. Most states incorporate the nonresident/part year resident returns so you cannot file two separate returns. New Jersey is one state that requires two state tax returns if filing nonresident and part year resident (although the part year return is the resident return that covers part of the year.)
Thanks for your reply. Some additional information.
Alabama resident, finished school May 2024 and accepted a position with a company located in New York City. Received a salary while in Alabama from June to August 2024. Rented an apartment in NYC and moved in Sept. 2024 to start work. Still living in the apartment.
All wages are NY source, so the 2024 W-2 from NY Company shows the all wages for 2024 in Box 1 and Box 16 (NY State). NY State income tax in Box 17. Local wages (NYC), paid Sept. 2024 to Dec. 2024, are shown in in Box 18 and local tax in Box 19.
If I am a part-year resident for Alabama from Jan. 2024 to Aug. 2024, a nonresident for NY from June 2024 to Aug 2024, and a part-year resident for NY from Sept. 2024 to Dec. 2024, then would I need to file a part-year return and nonresident return for New York, and a part-year return for Alabama? NY form IT-203 is for Nonresident and Part-year resident.
If I am a full year resident of Alabama and a nonresident of New York for all 2024, then the filing is straight forward.
You would file a Part Year New York and a Part Year Alabama return. Your New York income is the amount you earned in New York, so most likely the Box 18 amount.
If you were a resident of New York State for only part of the tax year, you must pay New York State tax on all income you received while you were a resident of the state and on income you received from New York State sources while you were a nonresident.
Income is sourced to where it was earned, not necessarily the location of the company. New York has a W2 requirement that employers must report in Box 16 the same amount as Box 1, but it is not necessarily the state wages. New York also has a Convenience of the employer rule, if this applies, you would pay New York tax on the income, but you would then claim the credit for the taxes paid to another state on the Alabama return for the income you earned in June to August.
You would be able to file a Part Year Alabama return with residency dates of January to August. You would report the income for Alabama that you earned January to August.
Thank you for the follow-up.
Since all wages for 2024 were New York State source, the Part Year New York tax return will show all wages received and the tax due on those wages. As you mentioned, this will include wages received as a part year resident and as a nonresident.
The Alabama Part Year return will only show the wages received as a nonresident of New York.
When I use Alabama Schedule CR to claim the credit for taxes paid to New York as a nonresident, Column B states “Taxable Income as shown on the Other State Return” and Column E states “Tax due the other state as shown on that State’s return”. I can calculate the taxable income and the tax due for the nonresident time period, but these amounts will not match the amounts shown on the Part Year New York return that includes all wages for the year.
Thanks again for your assistance.
The amount you enter on the CR form will be the tax paid to New York as a nonresident. Alabama provides the following example to help explain this:
See the link below for more information:
Thank you for your response.
I agree that the amounts I enter on Schedule CR will be the tax due to New York as a nonresident and the taxable income as a nonresident. Since all my wages were from a New York State source, my New York Part Year return will show the tax due and taxable income as a nonresident and as a part year resident. The amounts on Schedule CR will not match the tax due and taxable income as shown on the New York Part Year return.