New York part year resident

[BP.]

Taxpayer was part year PA resident, then part year NY resident. Same employer in both states. No non-resident income in either state. The W-2 apportions the PA residency earnings. But the W-2 also has the full federal earnings recorded as NY earnings.

Should the W-2 be corrected, or is this how NY wants the income to be reported? My concern is that NY won't accept the NY income reported on the return, because it won't match the W-2 NY earnings. Taxpayer is checking with payroll dept. Thanks!

[BOB W]

Taxpayer was part year PA resident, then part year NY resident. Same employer in both states. No non-resident income in either state. The W-2 apportions the PA residency earnings. But the W-2 also has the full federal earnings recorded as NY earnings.

Should the W-2 be corrected, or is this how NY wants the income to be reported? My concern is that NY won't accept the NY income reported on the return, because it won't match the W-2 NY earnings. Taxpayer is checking with payroll dept. Thanks!

Are you sure this wasn't a temporary job in one of the states?

A W-2 like this can have many pages, are you sure you are not looking at the "Total" page?

[BP.]

Just as stated in orig post

Hi, Bob, thanks for reading/replying. No, it is not a temporary job. As I said, no non-resident income. Same employer in each state; longtime employment with same employer. Just a move from one state to the other. Quite straightforward.

Yes, W-2 is multi-page, and no, I am not looking at the "Total" page. I am looking at the copy with NY in the state box, but an amount that matches federal.

[BOB W]

Hi, Bob, thanks for reading/replying. No, it is not a temporary job. As I said, no non-resident income. Same employer in each state; longtime employment with same employer. Just a move from one state to the other. Quite straightforward.

Yes, W-2 is multi-page, and no, I am not looking at the "Total" page. I am looking at the copy with NY in the state box, but an amount that matches federal.

Sorry for my slow pickup on your post info. It just seemed like I should double check all info as some posters (not you) can get the facts wrong (like me).

Anyway, yes it looks like the employer (payroll service) screwed up and never made a clean cut when the transfer took place. There are several issues that the employer need to research. You did the right thing sending the employee back to the employer. You'll just have to wait for the outcome.

If I remember correctly, the part year return has a days worked in state and out of state section. You may have to use that area to get to the correct earnings in NY.

[joanmcq]

Was it the same workplace? what that W-2 is telling me is that he worked in NY all year, but lived in NY for part of the year and in PA for the other part. He pays NY taxes for the full year because he worked in NY all year. He pays PA taxes for the part of the year he lived in PA. He gets a credit in PA for the taxes paid to NY while a nonresident of NY. He files a PY NY return and a PY PA return. Next year (if he moved from NY to PA) he files a NY NR and and PA resident return.

[BP.]

OK, thanks much, Bob! Almost addressed my orig post directly to you, as you are our go-to NY guy!

I get the occasional non-resident NY income folks, so I know NY can be touchy about things matching up just right. Thank you for pointing out the days worked in/out of state section, as I might need that to reconcile if employer doesn't correct.

Cheers, Barb

[BP.]

Was it the same workplace? what that W-2 is telling me is that he worked in NY all year, but lived in NY for part of the year and in PA for the other part. He pays NY taxes for the full year because he worked in NY all year. He pays PA taxes for the part of the year he lived in PA. He gets a credit in PA for the taxes paid to NY while a nonresident of NY. He files a PY NY return and a PY PA return. Next year (if he moved from NY to PA) he files a NY NR and and PA resident return.

Thank you, joanmcq! But what the W-2 tells us is not what happened. Easy, really. Lived in PA; worked in PA. Moved to NY; worked in NY. Same company. No non-resident income.

[joanmcq]

Ok! well, it was a good guess. He didn't telecommute for a NY company by any chance?

[John of PA]

Pa credit?

I tend to disagree with the earlier post that the entire year earnings to on the PA return, then Pa give a credit. I believe the credit on the PA is only for PA full year Residents.

[joanmcq]

If you are referring to mine, I was assuming he moved to PA from NY. But I did not say to report all the earnings to PA, but to NY, and get a credit in PA for the double taxed income (for time as NR to NY). But that is not the scenario, so my answer is not correct.

[BP.]

I love having you guys here in my "virtual office!"

[BOB W]

Forget my other posts > no need to send employee to employer................


TTB States Book pg NY-15 says " do not rely on the amount on the W-2 to determine earned income in NYS".

Here is Form IT-203 B for allocation of NYS allocated income:

http://www.tax.state.ny.us/pdf/2005/fillin/inc/it203b_2005_fill_in.pdf

This will solve all of your issues. I've seen this type of W-2 before and it always confused me as well. As I recall this was my work-around. Had no problems with NYS

[BP.]

Forget my other posts > no need to send employee to employer................


TTB States Book pg NY-15 says " do not rely on the amount on the W-2 to determine earned income in NYS".

Here is Form IT-203 B for allocation of NYS allocated income:

http://www.tax.state.ny.us/pdf/2005/fillin/inc/it203b_2005_fill_in.pdf

This will solve all of your issues. I seen this type of W-2 before and it always confused me as well. As I recall this was my work-around. Had no problems with NYS

This is beautiful, Bob. Thanks a lot!

[BOB W]

Hey>>> I got lucky.................it happens now and then.