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Hi, My husband and I bought a house in Florida in 2019, spent >6 months in Florida in 2020. We filed a part time resident for both Florida and NY in 2020 (65% Florida, 45% NY). My husband retired in 2020. I am still working remotely from Florida >6 months of the year, but go into the office (part time) when in NY for the other 5 1/2 months (where we own property).
I contribute most of my income to a 401K so I have hardly any earn wages for federal or state purposes.
In 2021 my husband did get a 1099 non employee income for 80,000 for money earned while he was employed in 2020. Confusing right?
So , my question is. Do we file as residents of Florida jointly and I need to file a non-resident for NY for my income (is that joint or just me)? What do I do with the non-employee income from my husband who will not have a w2? The 1099 will be addressed to FL. And lastly, we have dividend and capital gains from investment account all of which show Florida as our address. (and we will continue to take distribution at some point from our investments to fund retirement in the near future).
One of the first question in starting a 2021 tax return is if you lived in another state and I don't know how to answer that question.
Thank you
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The first issue in your case is one of domicile. Did your domicile actually change in 2020?
New York's rule is that your New York domicile does not change until you can demonstrate with clear and convincing evidence that you have abandoned your New York domicile and established a new domicile outside New York State. This means shifting the focus of your life to the new location. It is not enough simply to file a certificate of domicile or register to vote in the new location. All aspects of a person’s life are considered in determining whether a person’s domicile has changed. https://www.tax.ny.gov/pit/file/nonresident-faqs.htm#income
If your domicile is still NY, for tax purposes you are still considered a resident of NY, and ALL your income is taxable by NY - regardless of how much time you spent in FL.
But if you did change your domicile to FL in 2020 per New York's rules, then for 2021 you are a non-resident of NY. NY can tax non-residents only on NY-source income. NY-source income includes earnings from work actually (physically) carried out in NY, as well as income earned remotely from a NY employer, unless the employee is working remotely for the employer's convenience, rather than their own. A FL resident with NY-source income must file a non-resident NY tax return.
With regard to your husband's 1099, what is the date printed on the 1099? If the printed date is 2020, it should have been included on your 2020 tax returns.
The TT question about "living in another state" should be answered "Yes" only if you changed your state of domicile during the tax year. If you had the same domicile all year, but earned money in a non-resident state, you would answer that particular question "No", but you would answer Yes when the program asks if you had income from another state.
The first issue in your case is one of domicile. Did your domicile actually change in 2020?
New York's rule is that your New York domicile does not change until you can demonstrate with clear and convincing evidence that you have abandoned your New York domicile and established a new domicile outside New York State. This means shifting the focus of your life to the new location. It is not enough simply to file a certificate of domicile or register to vote in the new location. All aspects of a person’s life are considered in determining whether a person’s domicile has changed. https://www.tax.ny.gov/pit/file/nonresident-faqs.htm#income
If your domicile is still NY, for tax purposes you are still considered a resident of NY, and ALL your income is taxable by NY - regardless of how much time you spent in FL.
But if you did change your domicile to FL in 2020 per New York's rules, then for 2021 you are a non-resident of NY. NY can tax non-residents only on NY-source income. NY-source income includes earnings from work actually (physically) carried out in NY, as well as income earned remotely from a NY employer, unless the employee is working remotely for the employer's convenience, rather than their own. A FL resident with NY-source income must file a non-resident NY tax return.
With regard to your husband's 1099, what is the date printed on the 1099? If the printed date is 2020, it should have been included on your 2020 tax returns.
The TT question about "living in another state" should be answered "Yes" only if you changed your state of domicile during the tax year. If you had the same domicile all year, but earned money in a non-resident state, you would answer that particular question "No", but you would answer Yes when the program asks if you had income from another state.
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