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New York Source Portion on interest income

Forum|Forum|4 years ago
March 7, 2022
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Hi, I have 2 states for my 2021 tax return(PA and NY). I was living in PA and then moved to NY in Oct. I earned interest throughout the year for my bank account. When I try to fill my tax return, it is asking me how much is New York Source Portion. I am not sure what that means. Even though I was in PA, for the whole year my employer was in NY. So I know that for my wages, New York Source Portion will be 100% but what should I write for interest income?

Best answer by SteamTrain

You were in PA for "most" of the year...you said you moved to NY in October. Thus you should be preparing both PA and NY Part-Year Resident tax returns.

Thus, only the interest from Oct-Dec is NY income.

For part-year tax returns, things like dividends, interest, cap gains are considered taxable income in whichever state you were actually living in at the time you received the income.

Thus, if you received year end distributions from Mutual Funds in December, those $$ would be considered NY Part-year income and not PA Part-year income. Distributions received before Oct would be PA Part-Year income.

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SteamTrainAnswer

Employee

You were in PA for "most" of the year...you said you moved to NY in October. Thus you should be preparing both PA and NY Part-Year Resident tax returns.

Thus, only the interest from Oct-Dec is NY income.

For part-year tax returns, things like dividends, interest, cap gains are considered taxable income in whichever state you were actually living in at the time you received the income.

Thus, if you received year end distributions from Mutual Funds in December, those $$ would be considered NY Part-year income and not PA Part-year income. Distributions received before Oct would be PA Part-Year income.

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____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*