I have a hard time to understand how to report the Foreign Earned Income Exclusion on New York State form IT-203 when filing as a part time resident.
Specifically, I was living in NYC, accepted a job overseas, but went living overseas only 2 months after having started the job (lost time to organize the move, etc...). So I ended up receiving my first 2 payslips from the foreign business while still being physically in NYC.
In the Federal case, one first pro-rates the standard Foreign Earned Income Exclusion to the period of the tax year while he is effectively living overseas, and then the prorated amount cover the foreign earned income irrespectively on when it was earned.
For New York State IT-203 Part time Returns, FEIE is reported on line 18. The "Federal amount" column gets the FEDERAL maximum FEIE verbatim from the Federal return. For the "NYS amount" columns, instructions for line 18 of Form IT-203 are on page 23 and say:
New York State amount column
Enter that part of the federal amount that represents adjustments related to income you received as a nonresident that was derived from or connected with New York State sources.
Also add that part of the federal adjustment deductible while you were a New York State resident.
I find the last paragraph very ambiguous.
For Federal deductions not correlated to a time-period, I guess one can simply pro-rate the amount of the Federal column to the months of NYS residency, much like it's done for all other lines 1-18 on Form IT-203.
But what happens in the case of the Federal Foreign Earned Income Exclusion? FEIE is linked to a specific 12-months period (that you freely choose on Form 2225).
Additionally, on Page 50, the instructions say:
If you are entitled to claim a federal exclusion of, or deduction from, your foreign earned income (as stated under section 911 of the Internal Revenue Code (IRC)), you are also allowed to claim it on your New York State income tax return in the Federal amount column. You would also be allowed to claim that portion of the federal exclusion of, or deduction from, foreign earned income in the New York State amount column to the extent it relates to income reported in the New York State amount column.
Can I still pro-rate the FEIE, because "NYS recognize the Federal FEIE", or should the amount for New York state for line 18 be $0 because the income I was receiving, while being from a foreign business, was still earned while living in NYC?