Claim NYS credit for taxes paid in California - part time resident

Forum|Forum|2 years ago
April 14, 2024
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I moved from califronia to new york. I'm filing a part time resident for each state. However when I moved my payroll didn't withhold for new york until the the new year of 2024. I moved Oct 1 to NY from CA.

I'm checking to see if its it allowed to claim tax credit when the tax owed is less than tax payed ? I got a refund in california since I overpaid taxes for income earned in NY, but when filing for NY I have massive tax bill and i want to offset that with the taxes already paid by california for that specific NY income

However getting and error in turbotax that Taxes paid must be lower that taxes owed

TurboTax Deluxe Online

TomD8

Employee

Did you work in one of those states and have income from the other? If so, which of the two states is your main, primary home - your domicile in tax terminology? If you have to pay taxes in two states, then in TurboTax you must complete your non-resident state return before you do your home state return in order for both returns to be correct.

Or did you literally move from one state to the other during the tax year? If so, which is your "new" state of residence?

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

fernsrenato28Author

I moved from califronia to new york. I'm filing a part time resident for each state. However when I moved my payroll didn't deduct from new york until the tend of year. I moved Oct 1 to NY from CA.

Hence trying to ensure no double taxation here

TomD8

Employee

Did you continue to work for your California employer after your move to NY? If you did, and if your work after the move was entirely done remotely from NY, then your income after the move is not taxable by CA. It is taxable only by NY. In that situation you would not have income taxed by both states, and you would not be entitled to an "other state credit".

CA taxes non-residents only on CA-source income. Income earned from work actually (physically) performed within New York is NY-source income, regardless of the employer's location.

W-2 income is "sourced" where the work is actually performed.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.