NY return question

[mrichman333]

Ok, I did a NY return for a guy that worked in NY lived in NJ till October 1 2012 then moved to NY.

I did a NY it-203 nonresident and part year resident return. Tooke a credit on the NY return IT-203-ATT for the $708 in taxes he paid to NJ.

NY has sent a bill to the customer disallowing the $708 credit paid to NJ.

My software keeps taking the credit. Now I’m not sure if he is entitled to the credit or not.

What do you all say?

[ADGFINANCIAL]

OK, the credit can be taken for the period that he was a NY resident. Take it on IT-112R which flows over to IT-203-ATT. So if the $708. is for the taxes he paid from Oct to Dec then it should be OK.

August @ ADG Financial.com

[mrichman333]

Just got a slightly differnt tax from yet another program. If this wasn't for real I'd be roflmao.

If sonmeone has a little bit of time, could you run these numbers.

W-2 income box 1 $41,799. Tax withheld $5,938

S.S 46,164 1,939

med 46,164 669

NY 20-3783731 Wages 41,799 tax 1,959

NJ 20-37873100 43,429 0

Interest income $215

Lived in NJ 01/01/12 / 10/01/2012

NY 10/01/12 -12/31/12

Single lives in Brooklyn zip 11229

All 4 prgrams come up with the same Fed. Tax but each calculates a different state tax. I can shoot myself in the head.

Ths is a simple return, I jsu don't get what the heck the problem is.

Thanks

[MsTabbyKats]

Let's see:

He had to pay tax to NY while he lived in NJ. NJ should be giving him a credit for the tax he paid to NY.

While he lived in NY....he worked in NY.....so he didn't owe NJ anything for that period.

He should be filing a NJ Res return...for the period he lived in NJ.

He should be filing the IT-203 for NY. (Assuming NYC/Yonkers isn't involved). He should pay NY tax on the entire income (part of the year he was as NR...and then he was a Res). The tax he pays on the income while a NR is the tax you use as the credit for NJ.

[MsTabbyKats]

BTW...His W-2 is wrong. It says the entire income is taxable to NJ. It isn't.

And i just noticed NYC is involved!

Since I have nothing better to do...if you want to send me your e-mail I'll do a dummy for you.

[jklcpa]

I agree with MsTabbyKats. All of the wage income is taxable in NY because that's where he worked the entire time. The credit is for the wages that are taxed in more than one state, and that state happens to be NJ for the period he was a resident of NJ and working in NY.

[mrichman333]

BTW...His W-2 is wrong. It says the entire income is taxable to NJ. It isn't.

And i just noticed NYC is involved!

Since I have nothing better to do...if you want to send me your e-mail I'll do a dummy for you.

NJ did give him a credit for taxes paid to other states, NY did not. NY also had his withholding wrong.

One program I tried added the two amounts together (the NY and NJ) as two incomes. Think that was taxwise. anyway, if you could I'd love to see what you come up with.

[email protected] THANK YOU

[MsTabbyKats]

It's on the way.

I have to tell you...I don't like NY/NJ combo returns...when there's a move. They can get complicated.

Let me know if you have any questions.......

I just sent the states...I assume the federal was easy.

[Guest Taxed]

Were you able to recreate the tax return using MsTabbyKats dummy return on the 3 software you are testing? Just curious which software was most accurate??

[Lion EA]

You get a credit on your resident return for taxes paid to another jurisdiction. The only time he worked in a nonresident state was while he was a NJ resident and worked in NY. He gets a credit on his NJ return for NY taxes paid to NY while he was a NJ resident. Doesn't qualify for a credit on his NY return under your scenario.

[mrichman333]

Were you able to recreate the tax return using MsTabbyKats dummy return on the 3 software you are testing? Just curious which software was most accurate??

So all 4 programs came up with the same federal tax.

Thanks Ms TabbyKats.

I entered the same dates of moving in and out of the two state etc. this is what I got. 3 program went with IT-203 Non resident p/y resident, Drake went with resident return IT-201

Pro Series $75 refund

Drake $927 refund

Tax Slayer Pro $59 refund

One Desk $325 refund

NOTE none of the above is correct.

One desk is a software issue I believe, because even though I checked P/Y resident and entered the dates, when I looked at the hard copy of the form it listed 12 months of residency and it took a credit for taxes paid to NJ. I could not correct it.

NJ was not a problem for me, that part of t he return is fine.

This return was filed and the client got a letter from NY. I used one desk. I have egg on my face. The only thing that is saving me some embarrassment is that NY entered his withholding incorrectly. They entered $1,595 and not $1,959

This return was done late in the season and I was a bit burnt out and didn't look at the NY return close enough. Lesson learned.

I'm going to look at all for programs again and see if I can get them to all come up with the same amount.

I'll keep you posted

[mrichman333]

You get a credit on your resident return for taxes paid to another jurisdiction. The only time he worked in a nonresident state was while he was a NJ resident and worked in NY. He gets a credit on his NJ return for NY taxes paid to NY while he was a NJ resident. Doesn't qualify for a credit on his NY return under your scenario.

You are correct. I did make sure he got the credit on NJ. But my software also took it on NY which is wrong.. see above

Thanks

[MsTabbyKats]

I still don't see where you did a part-year NYC return?

You said he lived in NYC for 3 months! You won't get caught because his W-2 didn't indicate that he was a NYC res....but it's supposed to be included.

[mrichman333]

I still don't see where you did a part-year NYC return?

You said he lived in NYC for 3 months! You won't get caught because his W-2 didn't indicate that he was a NYC res....but it's supposed to be included.

Did part year state and no city. I caught the NYC thing also.