You will want to work on your non-resident NY state tax return first. You will then take a tax credit from your non-resident NY return on your resident CT state tax return. (Please note that you will only get a tax credit for your NY taxes up to the amount of CT taxes that would have been paid if the income was earned in CT).

Which is cheaper to live in CT or NY?

To follow up on Jordyn’s last comment, real estate taxes are often cheaper in CT than NY. I recently looked at properties in Westchester (Larchmont, Rye, Chappaqua) and Greenwich; in comparison to CT, taxes for similar properties were often double in NY.

What happens if you work in California and telecommute to New York?

So if you live in California and telecommute to an employer based in New York, you could be double taxed on at least a portion of your income as well. More common than double taxation is the risk of paying more tax than you otherwise would if you simply lived and worked in the same state.

Do you have to file NY state taxes if you live in CT?

You will also need to file a CT resident state tax return (for all income from all sources including NY). You will get a state tax credit in CT for the NY state taxes the your paid on your nonresident NY state tax return.

Do you get NY state tax credit if you work in CT?

You will get a state tax credit in CT for the NY state taxes the your paid on your nonresident NY state tax return. You will want to work on your non-resident NY state tax return first. You will then take a tax credit from your non-resident NY return on your resident CT state tax return.

Can a Connecticut resident work in another state?

The Connecticut resident will receive credit from Connecticut for income tax paid to the other state on income earned for services performed in the other state. The credit allowed will be the lesser of the tax paid to the other state or the tax which Connecticut imposes on the resident’s out-of-state wages.

Can a Connecticut resident file a nonresident income tax return?

A Connecticut resident who works in another state that imposes an income tax will be required to file a nonresident income tax return for the other state and a resident return for Connecticut.

Can a nonresident work outside of New York State?

The applicability of this apportionment system is limited, however. New York’s tax regulations require that a nonresident employee can only exclude income from days worked outside New York State if his employer required him to work outside the state on those days.