i live in california but i pay new york state taxes

i filing for ny state tax but i live in ca

Answer

Yes. You will have a NY nonresident state income tax return and a CA resident state income tax return.

If you are a permanent resident of CA but were in NY on a temporary basis (or worked remotely for a NY-based company) and earned income in NY, then you will need to file a NY nonresident state income tax return (for your NY source income only - your NY wages). You will also need to file a CA resident state tax return (for all income from all sources including NY wages). You will get a state income tax credit in CA for any NY state income taxes that you paid on your nonresident NY state income tax return.

You will want to work on your nonresident NY state income tax return first. You will then take a tax credit from your nonresident NY state income taxes on your resident CA state income tax return. (Please note that you will only get a tax credit for your NY state income taxes up to the amount of CA state income taxes that would have been paid if the income was earned in CA).  The credit for taxes paid to another state section will be at the end of your residence state's interview process.

Just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits to your resident states return.

Some additional information about NY state income taxes:

NY taxes all the income reported when calculating NY state income taxes (whether resident, part-year resident or nonresident) but you will only be required to paid a portion of the total NY state income taxes calculated (your percentage of the total NY tax that relates to your NY source income only)

The way that the NY state income tax return works is that NY looks at all of your income from all sources and generates a total NY state income tax on all income. When NY is determining the actual NY state income taxes that you owe, NY multiples the total NY taxes on all income by the percentage of NY source income over all source income. So if all your income is $10,000 but NY source income is $8,000, NY will calculate the NY state income tax on $10,000 then multiply this total tax by your NY source income over total income ($8,000/$10,000) to get your percentage of NY state income taxes on your NY source income. So in this instance, your NY state income tax liability would be 80% of the total amount of NY taxes generated (on all income). That is why all your income is being reported on your NY state tax return.

You can preview your NY Tax summary to see what portion of the total taxes for NY you are actually paying

To preview NY Tax Summary:

  • TurboTax Online sign-in, click Here
  • Under Tax Timeline, click on Continue your return
  • Go to "My Account" > "Tools"
  • Under the Tools Center, select "view tax summary"
  • Select "NY Tax Summary"

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

If you're like most taxpayers, you'll only need to file one state return, usually in your resident state. You might not even have to file a state return at all if you live and work in a state that doesn't collect income tax.

But if you have income from multiple states, own out-of-state property or business interests that produce income, or your employer withheld taxes for the wrong state, you'll probably need to file a nonresident state return in addition to your resident state return. More info

And if you moved from one state to another, you'll likely have to file part-year returns in multiples states for that year. You might even have to file a nonresident state return if you started working in the other state before you moved or continued working in your former state after the move. More info

TurboTax handles nonresident and part-year returns and will determine which state return(s) you need to file based on the information you provide in the Personal Info section.


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