Do you very own or rental residential home somewhere outside new York State and also continue to preserve a home in new York State or City? You might be a target because that a brand-new York State or brand-new York City residency audit indigenous the NYS department of Taxation and also Finance.

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The State has actually been aggressive in challenging the status of individuals who insurance claim they are nonresidents of brand-new York but continue to have ties come the State. One tie that frequently records the State’s fist is a house still preserved in new York. The significance of NYS resident condition is the the taxpayer have to pay earnings tax to the State on all income, regardless of wherein it is earned. Nonresidents pay earnings tax come the State just on income sourced in brand-new York. In addition, taxpayers who are brand-new York City citizens must also pay brand-new York City revenue tax on all income.For part taxpayers, the stakes room high.

A common example is a pair in your 60s who decide to move out of new York City and retire in Florida. The couple continues to own their brand-new York City home, together they plan to visit their children and also grandchildren still life in brand-new York during the summer. The couple started a family service many years ago and passed most of the obligations to their youngsters upon retirement. Their investments over the years have listed funds because that a comfortable retirement in Florida, including regular visits to new York and traveling abroad. Because their retirement, the taxpayers have actually not filed new York State earnings tax returns.

Years later, new York State may challenge their nonresident status and seek to tax them as new York State and also City residents for earnings tax purposes. Note that over there is no time border for the State to study a year for which no return was filed. If the taxpayers filed a nonresident return for a year, however, the State generally has up to three years native the due date of the return or as soon as the return was in reality filed, whichever is later.

In general, a taxpayer might be taken into consideration a brand-new York State or City residents under among two tests:

1. DomicileA taxpayer that is domiciled in new York is thought about a brand-new York resident. The load of evidence is ~ above the taxpayer to develop a change of domicile. The domicile test is based upon several factors, and also looks to identify where a taxpayer’s true residence lies: wherein is the one location a taxpayer intends to return?

In the example above, the brand-new York household ties weigh versus the taxpayers. Your time invested in new York City will additionally weigh versus them if they spend an ext time in brand-new York City 보다 in Florida, as will the level of your involvement in the family business. NYS will also compare their brand-new York house to your Florida home, and consider any an important or sentimental possessions in new York.

2. Statutory ResidentA taxpayer that (i) maintains a permanent ar of abode in the State and (ii) spends an ext than 183 job of the taxable year in brand-new York is thought about a new York resident for the year. In most instances, any part of a day spent in brand-new York is considered a “New York” day.

If in the over example, the taxpayers have unfettered access to their new York City home and also spend an ext than half the year in the City, then they are likely to it is in considered new York City residents.

Plan Ahead!

Proper planning, long before the State difficulties a taxpayer’s residency status, deserve to alleviate some of these issues. A taxpayer need to be ready with evidence of their readjust in domicile and also substantiation that they did no spend much more than 183 work in new York or that they relinquished their permanent place of abode. Negative documentation may result in continuous exposure to brand-new York State or new York City’s income tax.

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Being a snowbird have the right to be a positive experience in numerous ways, yet may an outcome in unwelcome fist from the State.