Multi State Question

You will file a part year return for NJ and SC reporting the amounts earned in while living in those states. Since you work remotely, chances are you don't owe NY but you might be that one that should.  Review the source income rules and determine if you are required to file.

Since NY taxes were withheld, you will file as a nonresident and claim either:

• no taxable income and get a full refund
• claim the income, pay tax and then get a credit on each part year return for the matching portion that is double taxed.

You must file NY Form IT-203 if you meet any of the following conditions:

• You have income from a New York State source (see Nonresidents: New York source income) and your New York adjusted gross income (Federal amount column) is more than your New York State standard deduction. Complete Form IT-203, lines 1 through 31 and compare the line 31 Federal amount to your standard deduction from the New York State standard deduction table.
• You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay or from your unemployment insurance benefit payments.
• You want to claim any of the New York State, New York City, or Yonkers refundable or carryover credits.

Nonresidents: New York source income

For nonresidents, New York source income is the sum (with adjustments for special accruals) of income, gain, loss, and deduction from:

• real or tangible personal property located in New York State (including certain gains or losses from the sale or exchange of an interest in an entity that owns real property in New York State or owns shares of stock in a cooperative housing corporation where the cooperative units relating to the shares are located in New York);
• services performed in New York State;
• a business, trade, profession, or occupation carried on in New York State whether or not as an employee (see TSB-M-10(9)I, Income Received by a Nonresident Related to a Business, Trade, Profession, or Occupation Previously Carried on Within New York State); and
• a New York S corporation in which you are a shareholder (including installment income from an IRC § 453 transaction).

New York source income also includes:

• your distributive share of New York State partnership income or gain;
• your share of New York State estate or trust income or gain;
• lottery winnings won in the New York State lottery, if the prize was won on or after October 1, 2000, and the total proceeds of the prize are more than $5,000;
• gambling winnings in excess of $5,000 from wagering transactions within New York State;
• any gain from the sale, transfer, or other disposition of shares of stock in a cooperative housing corporation in connection with the grant or transfer of a proprietary leasehold, when the real property comprising the units of such cooperative housing corporation is located in New York State;
• any income you received related to a business, trade, profession, or occupation previously carried on in this state, whether or not as an employee, including but not limited to, covenants not to compete and termination agreements (for additional information, see Form IT-203-F, Multi‑Year Allocation Form, and its instructions);
• in the case of a shareholder in an S corporation that has made the election to be a New York S corporation, and the S corporation has distributed an installment obligation under IRC section 453(h)(1)(A) to the shareholders, any gain recognized on the receipt of payments from an installment obligation for federal income tax purposes;
• in the case of a shareholder in an S corporation that has made the election to be a New York S corporation, and the S corporation has made an election under IRC section 338(h)(10), any gain recognized on the deemed asset sale for federal income tax purposes;
• in the case of a shareholder in an S corporation that has made the election to be a New York S corporation, and that S corporation terminates its taxable status in New York, any income or gain recognized on the receipt of payments from an installment sale contract entered into when the S corporation was subject to tax in New York; and
• any gain recognized by you for federal income tax purposes from the sale or transfer of a partnership interest, where the sale or transfer:
  • is subject to the provisions of IRC § 1060, and
  • occurred on or after April 10, 2017.