How does Multi state filing with New York work?

[zz26]

- Part Year VA

- Part Year NY/NYC

- Moved from VA (1/2022 - 3/2022) - NYC (3/2022), same employer

- Annual Bonus (10/2022)

- Stock vest (10/2022), granted in VA in 2021

1. Does my situation require claiming any credits from VA or NY/NYC? It looks like my employer withholds a % for VA and NYC when I got my stock vest and annual bonus. 

2. Am I being double taxed for Question 1, or is it being handled because my employer is doing the split and withholding for me? Is it typical for employers to not handle this, and if so is this where the credits come into play? 

3. For NY portion, why am I asked about being a non-resident income? Would this only apply for the time period 1/2022 - 3/2022?

[LindaS5247]

When entering your state tax returns, when multiple states are involved, you should enter your nonresidential state tax return first (VA).

Then enter your residential state tax return (NY).

It is recommended to prepare the nonresident state first, because your resident state will provide you a credit for the tax you pay to the nonresident state.  By preparing the nonresident state first, TurboTax can transfer the credit information to your resident state to return. 

For question #3. Yes it would be for the period 01/2022-03/2022, that would be your income earned in VA.

Click here for additional information on filing multiple state returns.

Click here for information regarding filing multiple states returns.

Click here for how to delete your state return in TurboTax desktop.

Click here for how to delete your state tax return in TurboTax Online.

[zz26]

Thank you. If I used to live in VA but now live in NY/NYC, is VA now considered a non-residential state for me even though it says part year residence? 

[SharonD007]

No, you will not prepare a non-resident tax return for VA if you moved from VA to New York in 2022. You will prepare part-year resident tax returns for both states. You must ensure that you entered the information in the personal section regarding where you lived in 2022. When you finish your federal tax return, you will go to the States section and will see part-year resident states listed for both states. Make sure that you prepare your former state tax return first then the state that you live in now.

For more information, please review the TurboTax article How do I file a part-year state return?

[zz26]

Thank you. Do I need to do anything for the taxes withheld for for both VA and NYC for the bonus or stock? Or because the way it was reported can I just enter it into the software? I am confused if this is resident or non resident income and for which state.. or if I choose the correct apportion amounts do I not need to worry?

[AbrahamT]

What is going to happen is as follows, the NY and Va taxes withheld which was originally reported on your federal  will automatically flow through to these two state returns. There is no need to allocate those. However, as you go along the input for filling out the actual state returns themselves, you will be led to screens that will ask you to allocate the wages. So, for the bonus and stock which most likely got reported on a W2, you will allocate  2 months worth (approximately 17%) to Va  and 83% to NY.