Worked and Lived in two states this year. Will I get double taxed?

[Nicks Living Life]

The Facts:

• For the first 180/190 days of the year I lived and worked in MA for a company based in MA.
• I just moved to NYC for a new job for an employer based in NY.
• My new employer thinks I still live in MA (haven't had a chance to tell them I've moved yet).
• I have a Massachusetts drivers license (not sure if that factors into this tax equation).

The Questions:

• Do I need to pay both MA and NYS/NYC tax on all income earned throughout the year? Or is it proportional based on the amount of income I earned in that state? If proportional, will both state taxes get taken from my paycheck but then refunded during tax season?
• Is my state tax bracket based on total income for the year, yet proportionalized based on the amount of income I earned in that state? Or is the state tax bracket based on income earned in that state?

[TomD8 · Accepted solution]

It works like this:

For 2022, you'll be filing a part-year resident tax return in both MA and NY.

MA can tax all the income you earned while you were an MA resident; NY can tax all the income you earned after you became a resident of NY. 

For tax purposes, you become a resident of NY on the day you begin living in NY with the intent of making it your new primary, permanent residence.  (Your driver's license is irrelevant in this regard.)  Note that NYC imposes its own income tax on NYC residents.

Once you become a NY resident, your new employer should withhold New York taxes only.  Once you become a NY resident, your income is no longer taxable by MA unless you physically work within the state of MA.

TurboTax can handle this common situation.

By the way, NY gives you 30 days after you become a resident to obtain a NY driver's license.

[Critter-3]

FYI ... tell your employer of the new address TODAY  so the correct payroll can be done timely ... the longer you wait the messier it gets at tax time. 

[Nicks Living Life]

Hi @TomD8 ,

Thanks for your reply! One follow up - 

• Is my state tax bracket based on total income for the year, yet proportionalized based on the amount of income I earned in that state? Or is my state tax bracket based on income earned in that state?

Thanks!

[Critter-3]

Not sure for MA  but  NY uses your total income for the year for the tax rate.