I am spending some time in Miami and thinking about changing my permanent residence from New York to Florida for a few months. Thoughts? Should I do it now or in 2021?

[mariagbarea]

For context:
-My lease in NYC expired Nov 30 so I don't have a place in the city anymore
-I am planning to stay in Miami until the Spring

[xmasbaby0]

We know absolutely nothing about your tax situation or job situation since you have not shared that information.  We do not know if you want our thoughts regarding your taxes or the climate in Florida compared the climate in New York.  Do you have some specific details to add so we have something to work with?

[Hal_Al]

Intent is a part of residency rules for tax purposes.

"I am planning to stay in Miami until the Spring"  indicates your time in FL is temporary.  You are most likely still considered a full year NY resident for 2020, for tax purposes, and most likely 2021 too, unless there's a big "maybe" in "planning". 

In your case (your employer is in NY), it doesn't matter. NY taxes telecommuters, resident or not.

 Here's a link to New York's memorandum on its "convenience of the employer" tax doctrine regarding non-resident telecommuters: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

[mariagbarea]

Thanks for your comments @xmasbaby0 and @Hal_Al!

I am employed and hold a H1B visa, my company is allowing me to work remote and I'd like to spend 3-4 months in Miami with the intent to live here permanently if I like it.

Not sure what info I should share re: my tax situation, I pay my taxes in NYC and usually get a refund if that helps. Would be a good idea to change my residence just for a few months or I should remain in NY since my company is also based there until I made a final decision? Would it be better to change my residency in January and not now? Any thoughts will be appreciated 🙂

Thanks!

[Hal_Al]

For tax purposes, it doesn't matter when you change your residency.  You will still have to pay NY taxes.

 If you work outside the state as a job requirement, you are only subject to New York State income tax on the days you work in New York. But if you work outside New York for your own convenience, you are subject to New York State income tax on all your income. Pennsylvania, Nebraska, Delaware and New Jersey have the same rule. For guidance see: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html

Here's a link to New York's memorandum on its "convenience of the employer" tax doctrine regarding non-resident telecommuters: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

The Department of Taxation and Finance
posted on its website the following
response to FAQs: “My primary office is

inside New York State, but I am
telecommuting from outside of the state
due to the COVID-19

 pandemic. Do I owe
New York taxes on the income I earn
while telecommuting?
If you are a nonresident whose primary
office is in New York State, your days
telecommuting during the pandemic are
considered days worked in the state
unless your employer has established a
bona fide employer office at your
telecommuting location. There are a
number of factors that determine whether
your employer has established a bona
fide employer office at your
telecommuting location. In general,
unless your employer specifically acted to
establish a bona fide employer office at
your telecommuting location, you will
continue to owe New York State income
tax on income earned while
telecommuting.
”

[Opus 17]

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@mariagbarea wrote:

Thanks for your comments @xmasbaby0 and @Hal_Al!

I am employed and hold a H1B visa, my company is allowing me to work remote and I'd like to spend 3-4 months in Miami with the intent to live here permanently if I like it.

Not sure what info I should share re: my tax situation, I pay my taxes in NYC and usually get a refund if that helps. Would be a good idea to change my residence just for a few months or I should remain in NY since my company is also based there until I made a final decision? Would it be better to change my residency in January and not now? Any thoughts will be appreciated 🙂

Thanks!

---

New York taxes you on telecommuting income if you work for a NY employee but live in another state, unless your employer requires you to work remotely.  

At best, in your situation you would file a part-year resident return and a non-resident return, but all your NY income would be taxed.  And as a non-resident, you might have fewer deductions and credits.

But I also agree that you are likely a permanent NY resident regardless of moving to Florida.  The key concept is called domicile.  Your domicile is your permanent home, it is where you have your "allegiance" -- your domicile is where you have significant relationships like family, friends, doctor, dentist, clubs and hobbies, recreational activities, church, and so on.  There is no single factor that determines domicile, it is a combination of all factors.  (For example, if you have a golf club membership in NY and you keep it, that tends to show your domicile is NY.  If you canceled your club membership and bought a membership in Florida, that would tend to show your intent to make Florida your new domicile.  Will you find a new primary care doctor and a new dentist?  Will you change your church?  And so on.