NY help

[Gretel]

I hope there is still help out there for NY.

Client separated from wife and moved out of NY in Aug. They want to file a joint return and NY instructions say, that they need to file as if P/Y spouse has been NY full year resident.

Do I have this right: 1. All income is taxed in NY 2. They are eligible for the Empire State Child Tax Credit (as part year my client would not be eligible) 3. My client will also have to pay state taxes to the state were he moved to (is retirement income only).

[TaxLadyinPA]

double taxation?

You didn't say what state he moved to .... If he moved to PA then no worries about his retirement as it isn't taxable as long as it isn't early distributions and you can probably file him as full year resident in NY and not worry about PA

But if he moved to another state that does tax his retirement, he can't be a full year NY resident for tax purposes and a part year in the state he moved to and get taxed again on the same income. He could only get the credit for taxes paid to another state if he was there as a non-resident.

I don't see how he can file as a full year resident of NY when he wasn't ... unless his retirement isn't taxable to the new state he moved to ... then .. right or wrong .. it probably wouldn't be questioned.

Providing more info as to what state he moved to might get you better answers here.

[BOB W]

The only thing I can say is that NY NEVER wants to give up a resident status when there is still a tie to NY. A separation still means a tie. Divorce is different.

[Gretel]

Bob, with having said what you said, they are then also entitled to the Empire State Child Tax Credit, right? I mean even NY cannot have it both ways.

[BOB W]

Yes, take the child credit...................do not file a part year res return.