Hello,
I am a Canadian citizen working in the U.S. on a TN visa. I moved to Texas on June 1, 2024, where I live and work remotely for a Texas-based company. My wife and child are still in Toronto, Ontario, and my wife works remotely for a Canadian employer. We own a family home in Ontario.
My wife and child are planning to move to Buffalo, NY, where my wife will continue her remote work (by crossing the border daily to Ontario and will work in Niagara Falls, ON) and my child will attend school in Buffalo. However, I will continue to live and work in Texas, and I will visit them frequently on weekends and holidays (less than 100 days per year). It's easy for me to visit Buffalo frequently vs Toronto.
To facilitate this, my wife will be leasing apartment in Buffalo for my wife and child. I plan to keep my car in Buffalo, as my wife will use it during the week. I’ll drive the car on weekends and holidays when I visit.
Here are my main questions:
Tax Residency:
- Will I establish New York State (NYS) residency by parking my car there (even though I don’t physically live in NYS and will continue to live and work in Texas), I might need to register this car there or transfer the title to my wife so that she can register there if I can't without resident proof?
- If I maintain my Texas residence, am I still at risk of being considered a NYS resident for tax purposes if I visit frequently but don't exceed 100 days in NYS per year?
Car Registration and Insurance:
- If my car is primarily parked in Buffalo for my wife’s use, can I continue to keep it registered in Texas without violating any NYS laws regarding vehicle registration?
- My insurance company says I’ll need a NYS address if the car is parked in Buffalo full-time. Does this mean I’d need to register the car in NYS?
My Wife’s and Child’s Tax Status:
- She will establish NYS residency for tax purposes by living in Buffalo, even though she is not working for a U.S. employer? Could the Canada-U.S. Tax Treaty help her avoid NYS income taxes?
Overall Strategy:
- What steps should I take to avoid inadvertently establishing residency in NYS and triggering state income taxes, while ensuring compliance with car registration and insurance rules in both NYS and Texas?
I would appreciate any advice or guidance on how to navigate this situation while ensuring I don’t run into tax or residency issues in either state.
Thank you!
