Children moved to NYC from Long Island

[gman98]

I have 2 children who are renting an apartment in NYC. They moved in mid August 2024 from Long Island. 

One child is attending grad school in NYC with no idea where she'll live after. Is she considered a NYC resident for 2024? She will have been there for less than 184 days. I'm assuming next year (2025) yes, since it will be for full year.

The other child graduated college and is now working in NYC. Is he considered a NYC resident since he also was there for less than 184 days in 2024?  Job didn't start until October.

Not sure how to help them fill out NYS tax return and how to answer questions about residency.

[marctu]

The question boils down to:  Do I have to pay NYC resident tax? 

Found there is this:

New York City residents must pay a personal income tax, which is administered and collected by the New York State Department of Taxation and Finance. Most New York City employees living outside of the five boroughs (hired on or after January 4, 1973) must file form NYC-1127.

Flowing from that is that Nonresidents of New York City are not liable for New York City personal income tax.

From there we go here:   What are the rules for New York City residency? 

The requirements to be a New York City resident are the same as those needed to be a New York State resident. You are a New York City resident if:

• your domicile is New York City; or
• you have a permanent place of abode there and you spend 184 days or more in the city.

The rules regarding New York City domicile are also the same as for New York State domicile. If your permanent and primary residence that you intend to return to and/or remain in after being away is located in one of the five boroughs of New York City, it is considered a New York City domicile.

Both of your children are different here.   The easy one is your child that is working and living in NYC.  They are a part-year resident of NYC for 2024.  Furthermore, since they are employed in NYC, more then likely NYC taxes are being withheld.  For 2025 they will most likely be a full-year resident.

The child that is going to school in NYC, is most likely a NYC non-resident as there is not an intent at this point to stay in NYC and they were there less then 184 days.   In 2025, since they have an abode and will there 184 days or more they would be a NYC resident.

Also keep this in mind, which is also found on the same page above:

Your New York City domicile does not change until you can demonstrate with clear and convincing evidence that you have abandoned your city domicile and established a new domicile outside New York City. Even if you live in a location outside of the city for a period of time, if it’s not the place you attach yourself to and intend to return to, it’s not your domicile. Your domicile will still be New York City and you will still be considered a New York City resident.

Thank you for the question @gman98 

All the best,

Marc T.

Turbo Tax Expert

27 Years of Helping Clients

[gman98]

Marc,

Thanks so much for the reply.  You confirmed what I was thinking.  Another few questions:

Since the child who is working and living in the city  will only have lived there for 146 days in 2024, I'm assuming   

he'll only pay city tax on the job he got in October (they are withholding city tax) as a part year resident. He had other income while living home on  Long Island.  And yes, 2025 he will be full time resident.   I'm assuming he should use his NYC address on his returns? 

My grad school child also worked while on Long island and is working part time  school in NYC while attending (they are withholding city tax) . I'm assuming she will get that tax back since she is considered a non-resident this year. Next year, 2025. of course, like you said is a different story, since her abode will be there full time. I'm assuming she should continue to use our address on the returns since she doesn't have plans to stay there? 

I'm sure Turbotax will step through this.

Thanks again!

[marctu]

All your assumptions are correct.    I would have the addresses laid out as such, especially so for the grad school child.   They would get the tax paid back, though I am a bit concerned about what address they used when filling out the tax forms with the part-time job in NYC.  This could show intent to be a NYC resident.   

Turbo Tax will help you do this as well.

Thanks again@gman98 

All the best,

Marc T.

Turbo Tax Expert

27 Years of Helping Clients

[gman98]

Thanks Marc,

I believe the school pre-filled in her address. They used her mailbox at the school in NYC  (not her apartment) if I recall, and she couldn't change it at the time she filled it out. 

[gman98]

Marc,

I confirmed that the school did indeed fill in the address as her mailbox at school. As i said it's a part time job at the school. They must do that in order to send paperwork.  I did confirm that when she filled out tax forms she was unable to change that address.  They are taking out city tax.  

Thanks again

[marctu]

A mailbox at school does not establish a domicile; so since the student was not in NYC for 184 or more they would not be a resident for 2024.   

Thanks for verifying @gman98