How to file income earned in multiple states

[Kiley]

I lived in New York for most of the year in 2007, January - October. I also earned income in NY in 2007. I also earned income in Massachusetts in 2007. Part of that income was earned while I considered myself a New York resident. Part of the income was earned while I considered myself a Massachusetts resident, November - December. Do I need to claim any or all the money I earned in Massachusetts on my New York state and local tax return? Also, do I need to deduct any or all of the money I earned in Massachusetts from my MA state and local tax return? Finally, should I be filing as a part-year resident in New York or a full year-resident in New York? I think I am filing as a Massachusetts part-year resident.

[gkaiseril]

This could be a very long discussion. But assuming you have moved permenantly, then you are part year resident in each state. If you meet the filing requirements in NY or are entitled to a refund you want to claim you will need to file a NY return and any NY city return as needed. The same holds true for MA. Salaries are usually based on the W-2, but NY state wages on the W-2 will be the same as the federal wages so you may have figure out the exact NY wages from the pay stubs. Interest and dividends are usually considered earned throught the year and are split by the time in each state.

[David1980]

The income earned in MA while you were a NY resident will be taxed to both states.

[gkaiseril]

States allow a credit for taxes paid to another state while a resident by use of a credit schedule so there is no or limited double taxation of the same income by both states. Unless you are really good at tax and administrative forms, seek a professional's help. The preperation cost may appear hign, but a good professional will save you both time and money.