I recently moved from New York City to Washington DC, and am domiciled in DC now. I still own an apartment in New York City, however, and have been present in New York City for more than 50% of the calendar year. My employer is located in DC.
As a result, I understand that I will be considered a New York State/City tax resident for the full calendar year even though I have moved. I believe that I am also considered a DC tax resident because my domicile has changed, however.
My question is how I handle tax obligations. I believe that both NY and DC offer tax credits for taxes paid to other states, but that the NY credit is only available if the other jurisdiction does not offer such a credit. As such, I suspect that at the end of the day, I will end up paying NY tax for the entire calendar year, and I will file a DC part-year return to obtain a credit against what I would have owed DC. I am currently having DC withholding on my paycheck, and I will submit Estimated Taxes to NY for the rest of my income at the end of the year, and then I believe that I can just seek a refund of the DC withholding.
Does this sound right? Or should I be paying DC tax for the portion of the year that I am domiciled there and getting a credit on my NY taxes for that amount?
Any advice greatly appreciated!
