Double taxation if both NY and CA resident

[zhengkaw]

Hi, I have been a long time California Resident. I now work for a Washington state company but I wish to spend some time in NY since I have chance to work remote. From what I gather, if I am a non resident in NY, I can use credits I pay for NY tax to offset CA so I don't get double taxed. https://ttlc.intuit.com/community/state-taxes/discussion/double-taxation-between-ca-ny-nj/01/1290202...

I want to confirm that this is true even if I am both a NY and CA resident. For example, if I accidentally stay > 183 days in NY, and CA still considers me a resident, would I then get double taxed on all my income? Or could I still use one tax to offset the other?

[SteamTrain]

Duplicate Post:   @zhengkaw     You need to stay in your original post, and  ask additional questions in there if what has already been provided is still  not clear to you.    Don't start all over again..

Go here...where you already have an answer...and ask more IN THAT POST  if needed:

https://ttlc.intuit.com/community/state-taxes/discussion/is-work-done-for-a-washington-company-in-ne...

[Opus 17]

If you don't change your domicile, and your NY abode is temporary, then you are still an NY non-resident even if you live in NY 184 or more days.  If you maintain a permanent abode in NY, then you are considered a resident of both states, even if you don't change your domicile.  NY seems to offer an offsetting tax credit that is different than the usual tax credit for non-residents.  

See the following:

https://www.tax.ny.gov/pit/file/pit_definitions.htm

https://www.tax.ny.gov/pit/credits/resident_credit.htm

You may want to consult with an experienced NY tax professional.  Unfortunately, you have chosen to split your time between two states that take the most aggressive stands toward determining residency. 

[TomD8 · Accepted solution]

If you maintain your domicile in CA, then you remain a resident of CA for tax purposes until you abandon that domicile and establish a new domicile in another state.

NY will consider you a resident for tax purposes if you maintain a permanent place of abode in New York State for substantially all of the taxable year and spend 184 days or more in New York State during the taxable year, whether or not you are domiciled in New York State for any portion of the taxable year.  This type of residency is called statutory residency.

It is possible to be both a domiciliary resident of one state and a statutory resident of another.

CA will allow its residents to take a credit on their CA tax return for taxes paid to another state on income that is taxed both by CA and by the other state, as long as the income is sourced within the other state.  You can read CA's detailed rules here:

https://www.ftb.ca.gov/forms/2019/2019-540-s-instructions.html

On the other hand, if you have to file in in CA as a domiciliary resident and in NY as a statutory resident, NY will not allow you to take an other state credit on your NY return.  Here is NY's rule on that:

"Taxpayers with dual residency status – If you are a resident of New York State for personal income tax purposes and also deemed a resident of another state for income tax purposes under its law, no credit
is allowed if the other jurisdiction allows a credit against its tax for the total resident tax paid to New York."

https://www.tax.ny.gov/pdf/2014/inc/it112ri_2014.pdf

[zhengkaw]

Apologies. I thought the questions were different enough to justify asking a new question, since one was about what NY considers source income and one was regarding double taxation.