I moved during 2007 from New York City to Florida for my Fellowship.
On NYC part-year resident taxes instruction says that I can only deduct moving expenses for NYC income, only if I moved INTO NYC. However, it says that you can deduct expenses incurred while you are a NYC resident. But I paid for most of the moving expenses (storage, moving track, airline tickets) while still living in NYC. So can I deduct moving expenses from NYC income or not.

Zip Code: 11223

I went to the website of the New York Dept of Revenue, and took a look at the rules for the part-year resident form. I think you're right with your interpretation that you can claim the moving expenses paid while a NY resident on your NY return, even though you moved out of NY.

Here is what the instructions say:

New York State amount column - Part-year residents - Also add that part of the federal [moving expenses] amount that you paid or incurred during your resident period.


So this is a planning opportunity for people who move from a state that has an income tax to a state like Florida that doesn't.

Finally, if your fellowship is for a year or less, and you can prove that you intend to return to NYC at the end of the fellowship, you probably qualify to deduct all your travel, lodging, and 50% of your meals as a temporary job assignment.

Zip Code: 01801

Thanks for prompt answer. Fortunately, I can now deduct my moving expenses on NY State tax return. Unfortunately, my fellowship is for 3 years, so travels and Meals and Entertainment are not a choice.
Well, at least I won't have to pay state taxes for the next 3 years.

Zip Code: 11223