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February 11, 2024
Question

If I moved to a state part way in the year, and all my income was made in another state, do I report the income I made while I lived in VT on VT state tax or do I put 0?

  • February 11, 2024
  • 1 reply
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I moved in August, from MA to VT, but work in NY (sole income all year, 1 W2). When it asks for wages made while I was a VT resident, do I report my income for the 4 months I was a VT resident, or do I put 0 since my income wasn't in vermont?

1 reply

DMarkM1
February 11, 2024

You will enter the income earned while a resident in VT in the VT part-year resident return even though earned from work in NY.  Also, I recommend completing your NY non-resident return first as the income earned in NY as a non-resident there and taxed by NY will be used to claim a credit on your resident VT return for taxes paid to another state. 

 

Your resident state typically taxes all income from all sources earned while a resident.  A state in which you worked but didn't live (non-resident) only taxes that state's source income.  That means the income is double taxed.  To mitigate that double taxation most resident states offer a credit for taxes paid to another state.    

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