Hi,
I live in New York, and I got a job that has a main office in Stamford, CT. They sent me a W-2 for last year, and it shows that they withheld taxes for both states - NY and CT.
What should I do now? I don't see an option in Turbotax to resolve this issue.
Thanks.
You'll need to sign in or create an account to connect with an expert.
It depends. Are you commuting to Connecticut or telecommuting from New York? You will have to file a resident NYS return and all of your wages are taxed by New York. You will also have to file a nonresident Connecticut return because state taxes were withheld.
However, where you worked (and why you telecommuted, if you did) will determine which state the income is actually sourced.
Connecticut uses the Convenience of the Employer test in determining source income. Generally, in a state that applies this test, wages earned by a nonresident are allocated to the employer’s location unless the nonresident works from an out-of-state location due to the necessity of the employer rather than the convenience of the employee.
If you telecommuted for your convenience, then your wages would be taxable in Connecticut. However, in that case, you will not be double-taxed because New York will give you a credit of taxes paid to another state.
If you telecommuted for the convenience of the employer, your wages are not taxable in Connecticut. However, you would still have to file a Connecticut return to get a refund of state tax paid.
The first thing you want to do is make sure you've filled out the Personal Info section correctly:
To ensure accurate calculations, always complete the non-resident return first to ensure accurate calculations.
It depends. Are you commuting to Connecticut or telecommuting from New York? You will have to file a resident NYS return and all of your wages are taxed by New York. You will also have to file a nonresident Connecticut return because state taxes were withheld.
However, where you worked (and why you telecommuted, if you did) will determine which state the income is actually sourced.
Connecticut uses the Convenience of the Employer test in determining source income. Generally, in a state that applies this test, wages earned by a nonresident are allocated to the employer’s location unless the nonresident works from an out-of-state location due to the necessity of the employer rather than the convenience of the employee.
If you telecommuted for your convenience, then your wages would be taxable in Connecticut. However, in that case, you will not be double-taxed because New York will give you a credit of taxes paid to another state.
If you telecommuted for the convenience of the employer, your wages are not taxable in Connecticut. However, you would still have to file a Connecticut return to get a refund of state tax paid.
The first thing you want to do is make sure you've filled out the Personal Info section correctly:
To ensure accurate calculations, always complete the non-resident return first to ensure accurate calculations.
Thanks.
I already put all my other information. Does it mean that I need to delete it and add non-resident info without anything else? Or I need to file non-resident first?
No, you do not have to delete anything and you can file your two state returns and your federal return at the same time. Before you submit your returns, please ensure New York is giving you a tax of credit paid to Connecticut.
To do so, please follow the instructions below:
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
taralpn74
New Member
ayalara
New Member
brandi-pride
New Member
vishpp
New Member
Callindril
Level 2