Any New York Tax Preparer around here?

[AccTaxMan]

Client moved from New York to California in 2013. He filed a Form IT-201 as New York resident last year and got a $10,212 "Resident Credit" on Line 41. But this year he has to file a IT-203 as a New York part-year resident and the "Resident Credit" is nowhere to be found on that form. Now his New York tax return shows a over $5,000 balance due while he received a refund of about $1,000 last year because of the "Resident Credit".

I think it is quite unfair to him ends up paying $6,000 more of tax just because he got relocated and moved out of the state during the year. Have I missed something?

[BOB W]

Resident tax credit happens when a NY resident works in another state and that other state's taxes causes a credit on the resident's tax return. On the IT-203 which, in your case, is a part year return thus each state income is taxes on the respective states return, so no credit is allowed.

Be sure you are allocating income properly on the NYS return.

[AccTaxMan]

Resident tax credit happens when a NY resident works in another state and that other state's taxes causes a credit on the resident's tax return. On the IT-203 which, in your case, is a part year return thus each state income is taxes on the respective states return, so no credit is allowed.

Be sure you are allocating income properly on the NYS return.

Hi Bob, the taxpayer worked in New Jersey but lived in New York. So he had been reporting the New Jersey employment income in his New York tax return and claiming the Resident Credit through the years.

But in 2013, he moved from New York to California. So he will file a New York part year resident tax return.

Now I know he cannot claim the Resident Credit in 2013 because he is only a part year New York resident.

But since he is only a part-year New York resident in 2013, does that mean he no longer needs to report the New Jersey employment income in his New York part year resident tax return?

[BOB W]

very good question............I looked at that issue and could not find any line. There still has to be a credit during the residency period. I will take a look for you as it will appear as another credit someplace. I will get back to you...........

[BOB W]

The resident credit line in on form IT-203 ATT. You will have to figure out how to populate the line.

ADDED: usually the tax program should automacally do the computation as long as you enter the w-2s by state. Althought you may have to munipulate the NY return to account for nj/ny income.

[AccTaxMan]

The resident credit line in on form IT-203 ATT. You will have to figure out how to populate the line.

ADDED: usually the tax program should automacally do the computation as long as you enter the w-2s by state. Althought you may have to munipulate the NY return to account for nj/ny income.

Thank you Bob.

I use Drake and they do not have a data entry line for "Resident Credit" in Part 1 Section A of the Form IT-203 ATT. I think I will have to call the technical support.

By the way, is there any instruction as to how to calculate the "Resident Credit" of a part year resident? I have read the instruction of Form IT-203 ATT and it does not mention anything about it.

[AccTaxMan]

Hi Bob, I think I have it figured out already. The key is to file the Form 112-R in order to claim the partial Resident Credit for the period that he was still a New York Resident.

New York definitely has the most complicated set of tax rules in the whole country.

[BOB W]

Sorry I was not more help in getting you direct info. I am doing this in between clients.

[AccTaxMan]

Thank you Bob. You have been a big help.