Domicile and Taxes

[Vagabond]

Hello,

My family and I are currently residing in NY with family while I work remotely for a NY based Company. We are considering relocating and declaring domicile in Florida, while I maintain working remotely for the NY based company.

My question is, how will living in Florida affect my W-2 taxes? What are the advantages to making this move?

Also, we operate a small business registered in NY. What are the advantages to moving this LLC to Florida?

Thank you!

[JulieS]

If you relocate to another state and work 100% remotely, you can stop having New York state tax deducted from your pay and can stop filing a NY state tax return in the first full year that you no longer live in NY. 

Since Florida has no income tax, you will save the amount that you normally pay to the state of NY. 

If you keep your small business registered in NY after your move, you will need to continue filing in NY and also to register in Florida as an alien LLC. You may want to consider closing the NY LLC and starting a new LLC in Florida. 

You should also consider the total costs of moving (which are not deductible except for active duty military service members), and the comparative cost of living in both locations. 

[Vagabond]

Julie,

Thank you for that information.

Another question, my position being remote is at the convenience of the employee. It is a job that I specifically took and pushed to be remote in lieu of onsite.

Would this change anything with my tax situation? Does my employer solely operating in NY affect it?

Thank you

[MinhT1]

Yes.

According the convenience of the employer rule, your income working remotely for the NY company may be taxable in New York state.

Please read this New York state revenue document for more information.