As many New Yorkers have left to stay outside the state during the pandemic, they may still liable to New York State taxes reports Bambridge Accountants New York.
While New York residents have left for homes in Florida and other states where taxes are zero, if they are still employed in New York and plan to return there, then they will be liable for the higher New York State taxes for the whole year.
Many workers in New York on visas have returned to their home countries. Again, if they remain employed in New York and plan to return there once travel restrictions are lifted, then they will have New York State building up.
New York State income tax rules are drafted so that temporary moves away will still keep you as a resident for New York tax purposes.
Under the state Department of Taxation and Finance's definitions, your tax home (domicile) does not change until you can demonstrate that you have abandoned New York and established a new tax home elsewhere.
New York defines your tax home (domicile) as:
- the place you intend to have as your permanent home
- where your permanent home is located
- the place you intent to return to after being away
New York will also look to see if you have a permanent place of abode in the state. This is a residence you permanently maintain (whether you own it or not) and is suitable for year-round use.
New York will treat you as a tax resident if:
- your tax home (domicile) is New York State or
- your tax home is not New York State, but you maintain a permanent place of abode in New York State for more than 11 months of the year and spend more than 183 days in New York State in the tax year
If you are New York tax resident, you will need to report your worldwide income on the New York State income tax return (form IT-201)
For U.S. expats, they will also need to be careful if they have returned home temporarily as they will need to keep an eye on the number of days they are spending in the U.S.
Contact Alistair Bambridge, firstname.lastname@example.org, +1 646 956 5566.
Bambridge Accountants has offices in London and New York, specializing in creatives and U.S. expats around the world.