Question

I live in 2 states

Forum|Forum|5 years ago
March 23, 2021
4 replies
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My wife and I live in NY state for about 5 months annually (first year). We are registered to vote in NY, and our automobiles are registered in NY. (we own a home in NY)

We live in CO the remainder of the year. My wife works for a CO company, I'm retired and we rent in CO.

How do we handle this for state tax??

Not A Product Question

Hal_Al

Employee

You file a NY resident return and a CO non-resident return. You will pay CO tax on the income your wife earns while working in CO, even if she works from home.

All your income is reported on your NY return, even the income earned in CO. NY will give you a credit, or partial credit, for the tax paid to CO.

J

JotikaT2

You will need to file two part-year resident state income tax returns in 2020. See the filing requirements below for each state.

New York residency details

Colorado Filing Requirements

To ensure your return is calculated correctly, you will need to confirm a few items:

In the My Info section of TurboTax, confirm that you have entered the correct state information:

Click Edit to the right of your name
Confirm your input under #2 Tell us the state(s) you lived in. Make sure you enter the residency dates for both states.
Go back to the personal information section, and verify the mailing address and "Other state income" section.  Be sure to answer yes or no as applicable to the question asking "Did you make money in any other states?".
Review your input in the Federal section under Wages. Ensure you have only reported the New York and Colorado wages and withholdings are reported on your W-2 Form.

Please note the following as it will affect the calculations:

When you are preparing more than one state return, make sure you prepare the part-year resident New York state income tax returns first. Be sure to answer the questions correctly to ensure only income sourced to that state specifically is reported.

You will do the same for the Colorado return. Make sure you only report the income earned while you resided in Colorado. If you have any income that is taxed by both New York and Colorado, you may be entitled to a credit for taxes paid in another state on your Colorado return.

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Hal_Al

Employee

@runfitdan

My answer assumes this arrangement will continue; you live part of the year in NY and part in CO.

S

SundayInSalem

Filing part-year returns is incorrect since you did not move and abandon your residency.

One state (NY or CO) will be your resident state. The other will be your non-resident state. As you have a permanent home in NY and rent in CO, @Hal_Al is correct. File a resident NY return and a nonresident CO return.

R

runfitdanAuthor

Thank you all for your input, very much appreciated!

I just read this statement on NY state income tax definitions:

You are a New York State resident for income tax purposes if:

your domicile is New York State (see Exception below); or
you maintain a permanent place of abode in New York State for substantially all of the taxable year and spend 184 days or more in New York State during the taxable year, whether or not you are domiciled in New York State for any portion of the taxable year. Note: Any part of a day is a day for this purpose.

In that I don't live in NY for 184 days, or more, it seems to me that I can claim part year residency in NY

Hal_Al

Employee

You are a NY resident because your "domicile" is in NY. You don't meet any of the exceptions.

Exception: If your domicile is New York but you meet all three of the conditions in either Group A or Group B, you are not a New York State resident.

Group A

You did not maintain any permanent place of abode in New York State during the tax year; and
You maintained a permanent place of abode outside New York State during the entire tax year; and
You spent 30 days or less (a part of a day is a day for this purpose) in New York State during the tax year.

Group B

You were in a foreign country for at least 450 days during any period of 548 consecutive days; and
You, your spouse (unless legally separated), and minor children spent 90 days or less in New York State during this 548-day period; and
During the nonresident portion of the tax year in which the 548-day period begins, and during the nonresident portion of the tax year in which the 548-day period ends, you were present in New York State for no more than the number of days which bears the same ratio to 90 as the number of days in such portion of the tax year bears to 548. The following formula illustrates this condition:

number of days in the nonresident portion x 90 = maximum number of days allowed in New York State
548