Full time in CO, part time In NY

[CJtoCo]

After living in New York for my entire life I have recently accepted a new full time position in Colorado.

I will be moving to the Greater Denver area and working for an organization located in Colorado. I have a very good relationship with my current New York based employer, and as such they have asked if I would be willing to remain as a part-time employee, working remote a few hours a week. I would like to take them up on this - at least temporarily during the transition - as they have been a good employer and the extra income during the move will be helpful. 

Should I be concerned about any unforeseen tax implications of living in Colorado and working full time for a Colorado organization while also part-time for a New York based company? I have only ever worked and filed In NY. 

Thanks very much

[Opus 17]

New York taxes income from New York employers if you are working out of state for your own convenience (your choice instead of the employer's direction).  That means that, in general, you must file a NY non-resident return to report your NY income, and a CO resident return to report and pay tax on all your world-wide income, including NY income.  CO will give you a credit to partially offset the taxes you pay to NY for the same income.  

In the year you move, you will be a part-year resident of CO and a part-year resident of NY.  You will pay NY tax on all your NY income (both before and after the move) and you will pay CO income tax on your CO income (income that is paid to you after you move, including both your CO employer and your NY employer).  Again, there is an offsetting credit, although the tax returns will be slightly trickier to prepare for the year you move.  

Lastly, if you never set foot in NY during the year, then NY can't tax you even if you are working for a NY employer for your convenience.  This means that, suppose you move in 2024, and never set foot in NY in 2025, then the convenience of the employer rule will apply in 2024 (since you lived in both states) but won't apply in 2025, and you won't owe NY tax on your NY employer income.   But spend even 1 day in New York, and the convenience of the employer rule applies.  

[CJtoCo]

Thanks very much for the information. This is all happening quickly so I'm trying to learn as fast as possible. It may not be necessary but here are a few specific dates for my transition:

12/20/2023 - Last full day of employment in NY (Submitted a resignation with this date, but will be brought down to 'part-time' by my current employer to help with the transition)

12/23/2023 - Last day of residency in NY (worked out an agreement with the current landlord to terminate current lease a little early)

12/27/2023 - First day of residency in CO (apartment move-in/lease commence)

1/3/2024 - Start date of employment in CO

In the week between arriving in CO and officially starting work I'm hoping to get my ID/car/insurance/etc. sorted out, so it looks like I will be a part time resident for 2023, even if it's only for a few days.

[Opus 17]

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@CJtoCo wrote:

Thanks very much for the information. This is all happening quickly so I'm trying to learn as fast as possible. It may not be necessary but here are a few specific dates for my transition:

12/20/2023 - Last full day of employment in NY (Submitted a resignation with this date, but will be brought down to 'part-time' by my current employer to help with the transition)

12/23/2023 - Last day of residency in NY (worked out an agreement with the current landlord to terminate current lease a little early)

12/27/2023 - First day of residency in CO (apartment move-in/lease commence)

1/3/2024 - Start date of employment in CO

In the week between arriving in CO and officially starting work I'm hoping to get my ID/car/insurance/etc. sorted out, so it looks like I will be a part time resident for 2023, even if it's only for a few days.

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If you have not been paid by the CO company, and will not receive any income in CO until after 1/1/24, then it will be simpler (and make no difference to your taxes) to just file as a full year New York Resident, ignore Colorado, and consider the start date of your Colorado residence to be 1/1/24 for tax purposes.  Since your move-in date is 12/27, the only reason to go through the hassle of reporting part-year NY resident and part-year CO resident is if you will receive CO income between 12/27 and 12/31/23.