Residency status and state taxes: New job, WFH for two months and then moving

[pizadt]

Hi! 

I live in NY and just started to a new job in PA on July 1. I will move to PA in late August. How does that affect my residency status and how to know what taxes I will owe in each state? Thank you!

[slaudenslag · Accepted solution]

For 2021 you will file a part year resident return for both NY and PA. If you were employed while in NY, your W-2 from that employer will report your NY income and state taxes withheld.  Your W-2 from your PA employer will report your PA income and state taxes withheld.  If using TurboTax, these amounts will be properly carried forward to the appropriate return.  If you have other income such as interest, dividends, brokerage transactions etc., this income will be allocated based on your percentage of residency in each state.  Again, TurboTax does a great job with this income allocation.

Transition years between states can be tricky but when your employer is withhold state taxes properly, tax filing steps are relatively simple.