Posts Tagged ‘Debt’

New York state income tax audit Q&A

September 29th, 2022

If you move in or out of New York state in conjunction with the sale of a business or a contract to end employment,Guest Posting you should consult with a tax attorney. These issues are beyond the scope of this Q&A.

Common New York income tax audit Q&A for salaried employees:

Why is New York state auditing me?New York state guards its income tax base by conducting audits that can find either residency or New York source income. Residents of New York are liable for tax on their worldwide income. Non-residents are liable for tax on their New York source income. Typical targets for audit are executives and other high income earners that travel to New York state and file non-resident returns, or fail to file any return.

How could I be found resident of New York?Two ways.

First you may be domiciled in New York state and spend at least 30 days in the state during the year. Domicile is a legal concept that refers roughly to where you’re from. You can change your domicile, but only if you move somewhere that is not temporary.

Second, you may be a statutory resident of New York. You are a statutory resident if you maintain a home in New York (including an apartment you rent) and spend more than 183 days in the state. With narrow exceptions, any portion of a day spent in the state (even a minute) counts as a whole day. Travel days in or out of New York always count as New York days.

If I’m not domiciled in New York and not a statutory resident, can New York state still tax me?

Yes. New York can and will tax you on your New York source income. If you earn salary or wages, your New York source income is the portion of your earnings from days spent in New York state.