Double Tax Credit: Part year resident of both NY and NJ. Earned all income in NY. How to claim the tax credit for income earned and taxed by NY as well as NJ as resident?

Forum|Forum|2 years ago
March 7, 2024
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I and my wife both were part year residents of NY for 212 days and moved to NJ. We both earned income in NY all year. Our W2 shows income that we earned while we were residents of NJ along with NY income. Now in NJ state tax return, we can calculate the income that is double taxed ( NJ income reported on W2). How to calculate the tax that NY collected for the NJ portion of the income? What formula to use?

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Best answer by DMarkM1

Use the NJ portion of income earned in NY divided by total NY taxable income. That percentage multiplied by the total NY tax liability will be the NY tax on the NJ income portion (double taxed income).

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santanuAuthor

A follow up question: All my income is from NY source but I am part year resident of NY and NJ both. In my NY return do I need to allocate the NY source income in the proportion of number of days stayed in NY and NJ? Or I allocate 100% of NY income to NY?