Moved from New York to Tennessee

[sledhead1966]

I moved from NY to TN in October.  I am working for the same employer, but they are doing business in both states.  My employer stopped taking out NY income taxes at that time.  My W2 box 16 shows all of my full year taxable income under the NYS line and nothing appears for Tennessee.  I know there is no income tax in Tennessee, so I should not have any further NYS tax burden once I moved.  Is that right?  I am allocating my income to NY based on the last paycheck I received while working and a resident of New York.  From that point forward, I should have no further NY taxable income.  Please  let me know if this is correct.  I am also allocating my wifes pension and social security in the same manner.  Plus I am allocating our interest income based on the October date cutoff.  Does all of this sound correct?

[rjs · Accepted solution]

Yes, that all sounds correct.

New York has an unusual rule that W-2 box 16 must be the same as box 1. Any adjustments are made on the New York tax return. That's what your allocation does.

You should allocate your interest income based on where you lived when you actually received the interest or when it was credited to your account. That's not the same as allocating the total for the year in proportion to the amount of time you lived in New York. Any interest that you received before you moved out of New York is New York income. The same applies to pension and Social Security income.

You should be filing a part-year resident return for New York.

[BrittanyS · Accepted solution]

Yes.  If you were a resident of New York you only pay tax on income you received while being a resident.  You will need to file a New York State part-year resident return.

As @rjs stated, the information on your W-2 must be reflected on the return how it shows on the W-2.  Interest Income, Social Security Income, and Pension Income is taxed based on what income was earned during your time as a residence of New York.  

TurboTax can help you with these calculations.  TurboTax will help you allocate the percentage correctly based on the entries you select during setup.  

Here is a link for how to fill out a New York State part-year resident return:

New York Part-Year Resident Return

@sledhead1966