what is consider state residency? My NYS driver's license will have an out-of-state address

[vinnytin]

I'll be moving on 5/2022. I will be living in NJ for a year but plan to move back to NYC afterward. I have an NYS Driver's license with an out-of-state New Jersey address, and an NYS car registration with an NJ address, along with an NJ rent lease.

When filing my taxes, do I have to file taxes for NY? or would it be better just transfer my driver's license and registration completely to NJ to avoid NY altogether. My goal is to avoid paying NY/NYC tax.

[ErnieS0]

The best way to avoid New York and New York City tax is to move permanently out of New York state and live and work in New Jersey.

A driver’s license doesn’t carry much weight in a residency audit. Auditors know people move around without changing their license for months, or sometimes forever. They often fraudulently use a relative’s address to avoid tax or to pay lower car insurance.

What matters is where you actually live and work.

If you move to NJ but continue to work in NY – either physically or sometimes even remotely — you must still pay NY tax as a nonresident.

You don’t have to pay New York City tax is you don’t live in NYC. However, you may still be considered a NYC resident if you move to NJ but still own or lease living quarters in NYC.

[vinnytin]

Thanks for the reply, Ernie, I am a bit confused.

My employer is in NJ and I will be living in NJ. I don't own or lease an apartment in NYC, my father does. I plan to stay in NJ and work in NJ and "may" return to NYC after a year.

Will I still need to pay NYC taxes?

[ErnieS0 · Accepted solution]

No you will not have to pay New York tax once you move to NJ. You will be a New Jersey resident even if your driver's license and registration is still from NY.

Make sure you update your address with your employer and check your first paycheck to make sure they started taking out NJ tax and stopped taking out NY and NYC tax.