NASSAUSUFFOLK

Hello Everyone:  I have a single client that worked in NY all of 2019, with only NY tax w/h. She was a resident of NJ for 7 months and then moved to NY in August. When I enter this data in Lacerte, it shows all income to NY, with nothing for NJ. I have tried various ways of entering the info to try and generate a NJ return showing some income allocation, even though there most likely wouldn't be taxed owed. I even tried allocating wages pro rata in the state field, but I do not think this is correct since none of the income is from a NJ source.
Or, should the NJ return show $0 income.
I would appreciate everyone's help or information on the proper way to report these wages.

Thank you.

------------------------------
Melanie Fleischer, CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
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I am having a very similar problem with a NY client that moved to  NJ in November 2019.
I cannot figure out how Lacerte program handles this matter and I do not like to perform so many manual overrides - I feel like that is taking me in the wrong direction.
Incidentally, per a Lacerte rep - the NJ forms have not all been finalized.
They state I should wait until today to try again! (today being Friday March 6, 2020)​

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Pamela Sollog-Emanuel
self
Glen Head NY
------------------------------

Original Message:
Sent: 03-05-2020 03:06 PM
From: Melanie Fleischer
Subject: Individual Tax Return - NY & NJ Filing

Hello Everyone:  I have a single client that worked in NY all of 2019, with only NY tax w/h. She was a resident of NJ for 7 months and then moved to NY in August. When I enter this data in Lacerte, it shows all income to NY, with nothing for NJ. I have tried various ways of entering the info to try and generate a NJ return showing some income allocation, even though there most likely wouldn't be taxed owed. I even tried allocating wages pro rata in the state field, but I do not think this is correct since none of the income is from a NJ source.
Or, should the NJ return show $0 income.
I would appreciate everyone's help or information on the proper way to report these wages.

Thank you.

------------------------------
Melanie Fleischer, CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
------------------------------

Hi Melanie,

I actually had this same exact scenario (except I use Ultra-Tax. Believe it or not the NYS Practitioner help line was a good resource for guidance because what I was doing did not seem right.

Ultimately what you want to do is get a days worked in NYS as a non resident to fill out on form IT203B. I assume you're filing an IT203 as a part year resident as well.

So in UltraTax, the input is similar to the form, I had to put employment dates, which in the Taxpayers situation was 1/1-12/31

On the bottom it asked me to separate wages earned as a NY resident and a non resident, and the non resident section basically allocated to line 10 of 203B which the state needs in conjunction to the IT203 showing lower NY wages even though the W2 has the full amount.

I confirmed this with the state. For me it was easy to separate the amounts because the NYC wages were accurately reflected for half the year so I just used that figure as the resident amount.

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Stephen Hatzistefanidis
KONSTANTINOS HATZISTEFANIDIS, CPA
Astoria NY
------------------------------

Original Message:
Sent: 03-05-2020 03:06 PM
From: Melanie Fleischer
Subject: Individual Tax Return - NY & NJ Filing

Hello Everyone:  I have a single client that worked in NY all of 2019, with only NY tax w/h. She was a resident of NJ for 7 months and then moved to NY in August. When I enter this data in Lacerte, it shows all income to NY, with nothing for NJ. I have tried various ways of entering the info to try and generate a NJ return showing some income allocation, even though there most likely wouldn't be taxed owed. I even tried allocating wages pro rata in the state field, but I do not think this is correct since none of the income is from a NJ source.
Or, should the NJ return show $0 income.
I would appreciate everyone's help or information on the proper way to report these wages.

Thank you.

------------------------------
Melanie Fleischer, CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
------------------------------

Oh and to follow up on the NJ, I suppose if there were no withholdings for NJ, it should pick up automatically some of the federal income as a NJ resident (at least my software does) but ultimately you'd owe tax. Usually I see when they work in NY but have NJ residency declared to the employer they withhold NJ with NJ wages assigned and NJ picks up and taxes but if there aren't any, I would hope your software picks it up, otherwise you can possibly add another W2 state wages line and put the NJ portion manually if you want but I'd consult with Lacerte on that input if you end up filling out 203B

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Stephen Hatzistefanidis
KONSTANTINOS HATZISTEFANIDIS, CPA
Astoria NY
------------------------------

Original Message:
Sent: 03-05-2020 03:06 PM
From: Melanie Fleischer
Subject: Individual Tax Return - NY & NJ Filing

Hello Everyone:  I have a single client that worked in NY all of 2019, with only NY tax w/h. She was a resident of NJ for 7 months and then moved to NY in August. When I enter this data in Lacerte, it shows all income to NY, with nothing for NJ. I have tried various ways of entering the info to try and generate a NJ return showing some income allocation, even though there most likely wouldn't be taxed owed. I even tried allocating wages pro rata in the state field, but I do not think this is correct since none of the income is from a NJ source.
Or, should the NJ return show $0 income.
I would appreciate everyone's help or information on the proper way to report these wages.

Thank you.

------------------------------
Melanie Fleischer, CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
------------------------------

Stephen, thank you for your help.

------------------------------
Melanie Fleischer
CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
------------------------------

Original Message:
Sent: 03-07-2020 07:30 AM
From: Stephen Hatzistefanidis
Subject: Individual Tax Return - NY & NJ Filing

Oh and to follow up on the NJ, I suppose if there were no withholdings for NJ, it should pick up automatically some of the federal income as a NJ resident (at least my software does) but ultimately you'd owe tax. Usually I see when they work in NY but have NJ residency declared to the employer they withhold NJ with NJ wages assigned and NJ picks up and taxes but if there aren't any, I would hope your software picks it up, otherwise you can possibly add another W2 state wages line and put the NJ portion manually if you want but I'd consult with Lacerte on that input if you end up filling out 203B

------------------------------
Stephen Hatzistefanidis
KONSTANTINOS HATZISTEFANIDIS, CPA
Astoria NY

Original Message:
Sent: 03-05-2020 03:06 PM
From: Melanie Fleischer
Subject: Individual Tax Return - NY & NJ Filing

Hello Everyone:  I have a single client that worked in NY all of 2019, with only NY tax w/h. She was a resident of NJ for 7 months and then moved to NY in August. When I enter this data in Lacerte, it shows all income to NY, with nothing for NJ. I have tried various ways of entering the info to try and generate a NJ return showing some income allocation, even though there most likely wouldn't be taxed owed. I even tried allocating wages pro rata in the state field, but I do not think this is correct since none of the income is from a NJ source.
Or, should the NJ return show $0 income.
I would appreciate everyone's help or information on the proper way to report these wages.

Thank you.

------------------------------
Melanie Fleischer, CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
------------------------------

Melanie:

The income is all New York source income.

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Robert Brown
ROBERT N. BROWN, CPA
Jericho NY
------------------------------

Original Message:
Sent: 03-05-2020 03:06 PM
From: Melanie Fleischer
Subject: Individual Tax Return - NY & NJ Filing

Hello Everyone:  I have a single client that worked in NY all of 2019, with only NY tax w/h. She was a resident of NJ for 7 months and then moved to NY in August. When I enter this data in Lacerte, it shows all income to NY, with nothing for NJ. I have tried various ways of entering the info to try and generate a NJ return showing some income allocation, even though there most likely wouldn't be taxed owed. I even tried allocating wages pro rata in the state field, but I do not think this is correct since none of the income is from a NJ source.
Or, should the NJ return show $0 income.
I would appreciate everyone's help or information on the proper way to report these wages.

Thank you.

------------------------------
Melanie Fleischer, CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
------------------------------

Melanie,

The client is a part-year resident of NJ and should use a RESIDENT return.  Enter the dates of residency.
The income should be taxable to NJ during the residency period.  That's how it should work.

The income is also taxable to New York.  As a part-year resident of NY (unlike NJ) they should use a NONRESIDENT return.  You can claim a NJ resident credit for the income reported to NY Jan - Aug.

I hope this works, because that is the way it should be reported.

Regards,

Brian


------------------------------
Brian Gordon CPA
President
State Tax Audit Representation
626 RXR Plaza
Uniondale, NY 11556
516-510-6041
bgordon@statetaxauditrep.com
www.StateTaxAuditRep.com
------------------------------

Original Message:
Sent: 03-11-2020 08:21 PM
From: Robert Brown
Subject: Individual Tax Return - NY & NJ Filing

Melanie:

The income is all New York source income.

------------------------------
Robert Brown
ROBERT N. BROWN, CPA
Jericho NY

Original Message:
Sent: 03-05-2020 03:06 PM
From: Melanie Fleischer
Subject: Individual Tax Return - NY & NJ Filing

Hello Everyone:  I have a single client that worked in NY all of 2019, with only NY tax w/h. She was a resident of NJ for 7 months and then moved to NY in August. When I enter this data in Lacerte, it shows all income to NY, with nothing for NJ. I have tried various ways of entering the info to try and generate a NJ return showing some income allocation, even though there most likely wouldn't be taxed owed. I even tried allocating wages pro rata in the state field, but I do not think this is correct since none of the income is from a NJ source.
Or, should the NJ return show $0 income.
I would appreciate everyone's help or information on the proper way to report these wages.

Thank you.

------------------------------
Melanie Fleischer, CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
------------------------------

Thank you Robert.

------------------------------
Melanie Fleischer
CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
------------------------------

Original Message:
Sent: 03-11-2020 08:21 PM
From: Robert Brown
Subject: Individual Tax Return - NY & NJ Filing

Melanie:

The income is all New York source income.

------------------------------
Robert Brown
ROBERT N. BROWN, CPA
Jericho NY

Original Message:
Sent: 03-05-2020 03:06 PM
From: Melanie Fleischer
Subject: Individual Tax Return - NY & NJ Filing

Hello Everyone:  I have a single client that worked in NY all of 2019, with only NY tax w/h. She was a resident of NJ for 7 months and then moved to NY in August. When I enter this data in Lacerte, it shows all income to NY, with nothing for NJ. I have tried various ways of entering the info to try and generate a NJ return showing some income allocation, even though there most likely wouldn't be taxed owed. I even tried allocating wages pro rata in the state field, but I do not think this is correct since none of the income is from a NJ source.
Or, should the NJ return show $0 income.
I would appreciate everyone's help or information on the proper way to report these wages.

Thank you.

------------------------------
Melanie Fleischer, CPA
DUBIN & ASSOCIATES, CPAs PC
Melville NY
------------------------------