My New York State taxes have been rejected bc I didn’t fill out a IT203B, but the form was included in the latest version of my taxes. Can someone please explain this?

[bkramer-gtalumni]

I’ve tried to file twice and did clarify that I was a part-time resident of New York.

[JosephS1]

Please clarify and expand upon your question.  Was the rejection due to not including the form in the e-file transmission?  Was it due to a specific line item error or Tuition adjustment problem?  Without knowing the specific reason for the rejection we cannot give you the proper guidance.

@bkramer-gtalumni 

[bkramer-gtalumni]

The IT203B form was included. I spoke to a representative at TurboTax yesterday and she said that I needed to clarify how much I was paid at my new job in Minnesota while still living in New York, which I did for the month of July (I moved on July 31).

It was still rejected however. I spoke to someone in the New York tax department and she said that because I lived in New York for more than 184 days I was considered a full time resident of New York and needed to fill out an IT201 form instead, despite TurboTax assuming that I needed to fill out a IT203B form.

But now instead of owing <$300 in NY state taxes I now owe more than $1200, which doesn’t make any sense to me, so I’m not sure which thing is right.

[JosephS1]

Below is a link to the NY Department of Taxation verifying their position on your residency.  To change your residency in TurboTax, follow these steps:

1. Click on the left side of your screen where it shows "State Taxes"
2. Click on the down arrow.  Then click on "Your State Returns".
3. When New York appears, click on "Edit"
4. Click Continue
5. At the top where it shows General Information, click on "Update"
6. Click on "Change Residency"
7. Place a mark in the "Full Year Resident" circle
8. Follow the steps to enter your address at December 31, 2022.
9. Enter the county, then the school district that your address pertains to.
10. Continue with any adjustments you need to make.

As you are now a New York state resident, whatever other state you are listing will now become the non-resident or part-year resident state so as you continue, be sure when the data is entered you receive a credit for any tax paid to the other state since NY is considering you a full year resident.

To change the other state follow steps listed above to change the other state in question to non-resident or part-year resident.

NY Residency Defined

@bkramer-gtalumni 

[bkramer-gtalumni]

I am not a New York resident, I am a Michigan resident as of August 1 2022.

But the NY state department stated if I lived in New York for more than 183 days I am considered a full time resident and must fill out an IT201 form.

However, the form asks me which New York county I lived in on 12/31/22. I lived in Suffolk county before August 1, but I was already living in Michigan by the end of the year.

Someone is not giving me clear information on how to proceed, and I need a straight answer.

[DianeW777]

Since you are considered a full year resident in New York (NY) they will tax you on your income for the year. You can select Suffolk county for 12/31/2022, since the full year action requires a resident return. 

Next, you will file the part year resident return with Michigan (MI). Because you are a part year resident and you are being taxed on income by NY that will also be taxed by your resident state of MI, then MI will give you a credit for taxes paid to another state on the same income.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

You can use your MI income divided by the total income to arrive at the percentage of tax on the NY return that is being paid on the same income.  Be sure to write this down because you may need to enter this manually on the MI return in this situation.  Once you get to the MI return you will enter the income being taxed twice and the tax being paid to NY on that income.  At this point the MI return will do the math to see what you credit will be (see rule above).