Ask the Expert: Determining New York State residency
We're thinking of moving out of state, but we still have our doctors here. I used to think New York didn’t deem you a resident if you lived out of state for six months and a day. But I've heard that NYS considers the location of your physicians; and if they're here, then NYS feels it can tax you as a resident. Is this true even if you reside out of state? Is this true if you maintain residences in both states, but spend less than half of the year in NYS?
Seeing New York doctors isn’t a decisive factor in determining whether you're a New York resident. It’s not that simple.
If you maintain residences both in New York and out of state, New York tax auditors ask detailed questions about five factors to determine your true domicile:
1. Your houses and how you use them. (Is one bigger and more valuable? Is one rented, the other owned? What are your roots in the out-of-state community?)
2. Where do you spend your time? (You’ll be expected to provide excellent records proving your location on each day of the audit period.)
3. Professional connections. (Do you maintain ties to a New York business?)
4. Valued personal belongings. (Where do you keep them?)
5. Family. (Where do your kids attend school? Where do your parents and siblings live?)
Even if New York isn't deemed your "domicile," you're subject to New York taxes if: 1) you maintain a permanent dwelling here, and 2) you spend more than 183 days of the tax year here. Time spent as an inpatient at a New York State medical facility doesn't count toward those 183 days; but that exclusion doesn't apply to outpatient care.
The bottom line
The New York Tax Department has an aggressive residency audit program.
