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Moved from North Carolina (NC) to New York (NY), NYC- how to handle residency to prevent double taxation

Hello, 

 

I'm trying to figure out how to prevent double taxation. I moved from NC to NY (NYC) two weeks before the end of the year in 2023. I work from home on my computer in the state of NY (NYC).

 

My mailing address for my bank, drivers license, most other mail is in North Carolina as is my W-2. I prefer to keep my permanent mailing address in NC for it to be easier. I am not a resident of New York yet and am not sure if I am going to change my residency yet or just get a NY ID. I am not sure what will happen in the future or which state I will stay in but for now, I would like to be in NY. 

 

1.  State Residency- Would I need to be a resident of New York in order to prevent being double taxed? Is there a certain cutoff date of when someone is required to be a resident for a state for taxation purposes?

2. W2 Address-Do I need to update my W-2 mailing address to prevent being double taxed? I prefer to keep it NC if not in case I move to a different place in NYC and keep the NC address as the more permanent one. 

3. Advice to prevent double taxation-Would you have any other advise on the best way to handle this to prevent double taxation? Is there any scenario where someone in this situation could be double taxed if they do something incorrectly?

 

Thank you for your help

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1 Reply
TomD8
Level 15

Moved from North Carolina (NC) to New York (NY), NYC- how to handle residency to prevent double taxation

1.  Any income you earn from work you perform in New York is taxable by New York regardless of whether or not you are a New York resident.

2.  If your move to New York is temporary, and you stay in New York fewer than 184 days of the tax year, then for tax purposes you will file as a non-resident of NY and a resident of NC.  In that situation you'd be able to claim a credit on your NC return for the taxes paid to NY, so you wouldn't be double-taxed.

3.  If your move to New York is intended to be permanent, then you become a resident of New York on the first day you begin living there.  In that situation you'd file a part-year resident return in each of the two states.

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

 

If you're going to be working in NY, you should have NY taxes withheld from your pay, even if you do not become or plan to become a New York resident.

 

Your tax obligations are not determined by the mailing address on your W-2.  Instead, they are determined by state law.

 

Post back if this doesn't answer your questions.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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