Hello!

I have a similar case as Devang experienced. I was interning in Indiana from June-August last year and worked on campus the rest 9 months in NY state. The W2 I received from my employer in Indiana has 2 pages, page 1 has the total income earned in Indiana, the total state tax withheld (IN+NY) and the tax withheld by IN state while page 2 has the tax withheld by NY state only. The confusion is the Gross pay for NY state on page 2 (which I have no clue where it comes from) which is supposed to be mentioned in box 16 but it shows the total income earned in Indiana (same figure as box 1). What does that mean?

If you are a resident of NY state, then NY can and will tax you income, irrespective of WHERE you earn it.

Indiana taxes the income because you earned it INSIDE of Indian's state border.

You can claim a tax credit for the Indiana taxes paid on the NY state tax return, which probably will give you a dollar-for-dollar credit.

Quote:

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Originally Posted by AtlantaTaxExpert

If you are a resident of NY state, then NY can and will tax you income, irrespective of WHERE you earn it.

Indiana taxes the income because you earned it INSIDE of Indian's state border.

You can claim a tax credit for the Indiana taxes paid on the NY state tax return, which probably will give you a dollar-for-dollar credit.

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Thanks for your feedback. In that case in which section of the IT-203 should I mention the amount paid to IN state as tax?

You compute the tax credit on Form IT-112-R.

However, IT-203 is for part-year residents or non-residents.

This causes me to ask: Were you a NY state resident when you were working in Indiana??