Domiciled in One, House in Another

[Vagabond]

My family is currently looking to move to the Tampa, Florida area. We have a house in NY that we intend to keep to utilize during summer months and Holidays. I also work remotely for a company based in NY. 

My question is, how would I report my taxes when I declare Florida as my domicile? I know the first year after I will have to do a split between Florida & NY. I will be working in a bona fide employer office in Florida, so will future earnings be taxed by NY since the employer is based out of there?

Thank you in Advance!

[Vanessa A]

Florida does not have an income tax, so that part will make it a bit easier.

After you become a resident of FL, you will file NY as a part year resident. As to whether or not you have to pay taxes on all of your income for the year to NY will depend if you meet the Convenience of the Employer rule.

The Convenience of the Employer Rule basically states if you are working remotely for your own convenience, then it is considered NY sourced income.  If it is for your employers convenience, then you would not have NY source income for the days you do not work in NY.  

The fact that you will be in NY during the summer, if you work during the summer, means you will still have to file a return and claim the income for NY for those days regardless of whether or not you meet the convenience of the Employer Rule as you would be earning it in NY.  

Read over the rules in this link to determine if you are working for your convenience or your employers convenience. 

If you do meet the test, then you would only pay taxes on the income you earn while inside the state of NY.  The rest of the income you earn while in FL would not be taxed at all. 

[TomD8]

@Vagabond wrote: "I will be working in a bona fide employer office in Florida..."

New York's "convenience rule" states:

"If the employee’s assigned or primary work location is at an established office or other bona fide place of business of the employer outside New York State, then any normal work day worked at home would be treated as a day worked outside New York State."

TSB-M-06(5)I:(5/06):New York Tax Treatment of Nonresidents and Part-Year Residents Application of th...

In other words, after you become a FL resident, if your assigned work location is a bona fide company office in FL, and you never physically work in NY, then your work income will not be taxable by NY.

[Hal_Al]

An additional thing to be aware of:

Can I be a resident of New York State if my domicile is elsewhere?

You may be subject to tax as a resident even if your domicile is not New York.

You are a New York State resident if your domicile is New York State OR:

• you maintain a permanent place of abode in New York State for substantially all of the taxable year; and
• you spend 184 days or more in New York State during the taxable year. Any part of a day is a day for this purpose, and you do not need to be present at the permanent place of abode for the day to count as a day in New York.

Reference: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm#income