Part-time resident in NY and NJ

[LamZesik]

Hello there,

Here is the situation: in 2021 I was part time resident in New York ( 6 month) and part time resident in NJ ( 6 month).

I am little confused on how to allocate the income and taxes between 2 states.

Please someone help.

Thank you,

Sophia

[rjs]

What kind of income did you have? If it was wages (a W-2) or self-employment, what state did you work in?

[LamZesik]

W2 only, moved to NJ 6/24/2021.

thank you.

[LamZesik]

6 month prior to my moving to NJ worked in NY, then 6 month worked in NJ.

thank you.

[GeorgeM777]

It appears that you are currently a resident of New Jersey, although only a part-year resident for 2021.  Based on information for the NJ Department of the Treasury, you must file a return if your income for the entire year (not just your period of New Jersey residency) was more than the filing threshold for your filing status.  Those filing thresholds are $10,000 for a filing status of single or married filing separately.  For married filing jointly, head of household, or qualifying widow(er) the threshold is $20,000.  Income over the aforementioned amounts would require the filing of a NJ return.  

In terms of allocation, only report income you earned while a New Jersey resident. You must prorate exemptions, deductions, credits, and the pension/retirement and other retirement income exclusions based on the number of months you were a New Jersey resident.  For this calculation, 15 days or more is considered a month. If you received income from a New Jersey source while you were a nonresident, you must also file a New Jersey nonresident return.

You may also need to file a NJ non-resident return if  New Jersey was your domicile for only part of the year and you received income from New Jersey sources while you were a nonresident.  In such circumstances, you may also need to file NJ-1040NR.

In terms of which return to complete first, prepare your non-resident return first.  Which, based on what you have stated, would be the NY return.  For NY, you will likely be filing a part-year resident return and will need to allocate your income accordingly.  That is, you will likely need to include all of your income from all sources and then allocate only that portion that relates to the time you were a NY resident.  

Here is a link to the NJ Department of Treasury Information Booklet which describes, among other things, how NJ taxpayers should complete NJ State returns.  Pages, 3 , 5, 8, and 9 may have some useful information for you.   

New Jersey Department of the Treasury