My daughter decided to do her own taxes online with TurboTax. She lived in Manhattan, NY from 1/1 until her move to Los Angeles, CA 9/1/2025. The free online version does not show any detail or forms as to how it calculates your tax or refund amounts. The Online version obviously has a positive/negative issue. It shows a $3 refund from NY State/City. That was wrong. I did the taxes the old fashioned way using IT-203 & IT-360.1-1 and she has a refund of $1,967 or a $1.964 error. Of course, Intuit requires a $160 fee to tell them that so pass it along. Don't use their OnLine version to file your taxes for 2025. Thank you.
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The rules for New York State are that you are considered a full-year resident if your domicile was in the state for 184 days or more. That's the first six months of the year. California has the same rule.
So in order to do this return correctly you need to first do the California return as a part-year resident first. That allows you to adjust your income in California since your daughter only resided there for about a third of the year.
Then you will do the New York return as a resident. Your daughter will be taxed on all of the income that she made for the entire year but she will be able to take a credit for the tax paid to California. That will reduce her taxable income in New York.
If I understand correctly, if one moves to another state, the smaller time spent in a state gets calculated first and the state with the most time spent is last. Or do you file the state you currently are living in first and the former state, even if it was over 184 days, gets filed last? It wasn't explained anywhere and the desktop app doesn't care which one gets filed first, it calculates correctly no matter which order they are filed. That looked suspiciously as a bug in the Online version.
This was a one year thing. But I appreciate your response. I was afraid AI would bury it. Thank you very much, Robert. Sherlock solved it again.
The percentage form returns back to 100% regardless of days, percentages. There is a bug. I conversed with their AI help and it continues to tell me I did something wrong. If so, why does the Desktop version work but not OnLine?
The rules for New York State are that you are considered a full-year resident if your domicile was in the state for 184 days or more. That's the first six months of the year. California has the same rule.
So in order to do this return correctly you need to first do the California return as a part-year resident first. That allows you to adjust your income in California since your daughter only resided there for about a third of the year.
Then you will do the New York return as a resident. Your daughter will be taxed on all of the income that she made for the entire year but she will be able to take a credit for the tax paid to California. That will reduce her taxable income in New York.
If I understand correctly, if one moves to another state, the smaller time spent in a state gets calculated first and the state with the most time spent is last. Or do you file the state you currently are living in first and the former state, even if it was over 184 days, gets filed last? It wasn't explained anywhere and the desktop app doesn't care which one gets filed first, it calculates correctly no matter which order they are filed. That looked suspiciously as a bug in the Online version.
This was a one year thing. But I appreciate your response. I was afraid AI would bury it. Thank you very much, Robert. Sherlock solved it again.
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