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Additional Posts in SALT - State and Local Tax
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You should get a credit for taxes paid in IL on your NY return so that you’re not double taxed. Since you were a resident in NY for more than half the year, you would be taxed on 100% of your earnings in NY.
Yep, that makes sense to me and it's what I understood after going through the instructions. Thank you!
Probably both states. You are a statutory resident of NY so 100% taxed in NY. You moved your domicile to Illinois and became a legal resident on 10/1. Double taxed.
I moved to NY, not from NY. I guess I was lucky hehe
You may need to research more, but I believe IL only gives a credit for taxes paid on NY source income. Capital gains income earned while a resident of Illinois isn't considered NY sources income so I don't believe you qualify for a credit. Since both states view you as a resident, you will get screwed. Would be safer if you don't have to claim IL residency when you received the capital gain income.
FYI, I was looking instructions for both State tax forms and the idea I got is that you pay the capital gain tax in the state you were living when that happened. They even ask you to say the date you moved in both partial year return forms. So I guess everything I sold before 10/1 goes to IL and the rest will go to NY, which makes sense to me. Note other states could have different rules. Thank you all for your help anyway :)
Oh I see, good to know.