Tax Amendement Approach - CT Resident Working in NYC

[K_lead90]

Context : CT resident working remotely for an NYC based company

I initially filed my 2023 tax return but did not select "NYC" under the other state income. I also did file CT state tax, the end result is that this led to me owing CT significant amount which i have paid off immediately.

After consulting a local tax advisor, i was informed that i need to amend my return and file NYC non-resident (i.e.  Form IT-203) to correct my mistake.

I'm working through the amendment now and encountered the following question "Enter the amount of federal income that was derived from NYC sources. If none, enter zero." Where and how would i go about locating this information? Should this be line 1 in my w-2? i saw a previous post that mentioned line 14 which is [NY PFL] in my case.

Any help would be greatly appreciated

FYI - i have also done my 2022 tax return incorrectly and would likely resolve in the same manner once i address my 2023 issue.

[JotikaT2]

In regards to your question, that actually addresses New York City.  Unless the W-2 Form lists city taxes, you would enter zero here.  New York city tax is typically only imposed on residents.

As far as New York state wages, that amount will depend upon what is reported on your W-2 form.  Typically, wages allocated as earned in a certain state will be reported in boxes 15-17.  In your situation, if all of your income was earned in New York, then you will see the full amount allocated to New York and that will be the amount you report as being from New York sources.  

This link provides guidance on when income is taxable to New York.  

Also, when preparing the amended return, be sure to start with the New York return and make sure you are preparing it as a nonresident.  You will then proceed to amend your resident Connecticut return.  Connecticut will allow you to claim a credit for taxes paid in New York on the same income that is required to be reported on your resident state return.  This will help avoid double taxation on the same income.  

You will do the same thing when you amend your 2022 tax return.  Please see this FAQ for guidance on amending your prior year returns.  Remember, any changes made on your federal input will pull into the corresponding state tax returns.  But make sure to start with the nonresident state interview here as well before proceeding to the resident state.  This will ensure you receive the credit for taxes paid to another state on your resident state return.