Worked in NY as a nonresident

Forum|Forum|2 years ago
February 28, 2024
1 reply
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Hi there! I made 100% of my income in NY but lived in PA. Do I need to allocate my income to NY based on the volume of business transacted? What does this mean? Do I need to fill out the nonresident business allocation schedule to allocate NY state business income?

Best answer by DianeW777

You must file a New York (NY) return and your resident Pennsylvania (PA) return. All of your income will be taxed to NY because it is considered NY source income.

Prepare the NY return first, then PA.

PA will provide a credit for taxes paid to NY on the same income (see below). TurboTax will know to provide the credit if the states are completed in the order noted.

If you are a New York State nonresident you must file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, if you meet any of the following conditions:

You are a nonresident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.
You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
You want to claim any of the refundable or carryover credits available.
You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income. As the resident state all worldwide income must be included.

The credit for tax paid to another state on the same income will be the lesser of:

the tax liability actually charged by the nonresident state, OR
the tax liability that would have been charged by your resident state

DianeW777Answer

You must file a New York (NY) return and your resident Pennsylvania (PA) return. All of your income will be taxed to NY because it is considered NY source income.

Prepare the NY return first, then PA.

PA will provide a credit for taxes paid to NY on the same income (see below). TurboTax will know to provide the credit if the states are completed in the order noted.

If you are a New York State nonresident you must file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, if you meet any of the following conditions:

You are a nonresident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.
You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
You want to claim any of the refundable or carryover credits available.
You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

The credit for tax paid to another state on the same income will be the lesser of:

the tax liability actually charged by the nonresident state, OR
the tax liability that would have been charged by your resident state

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vlaytonAuthor

Hi again! If I let an expert complete my taxes for me, will they know to do this?

DianeW777

Yes, a tax expert will know how to do this. You can choose to use TurboTax Live Full Service (click on See Pricing for your options); or you can use TurboTax Live if you use TurboTax Online.