What is my state of residence for tax purposes

[rsclflat]

I'm from NY and have been there on an off since 2015 after graduating college, working seasonal jobs in other states. I maintain a drivers licence there and am registered to vote there at my parents address. This year for the first time I have lived and worked more than half the year (about 11 months actually) in another state, VA. I would still say that I don't necessarily intend to stay in VA, I worked retail here 4 months, then landed a temporary 6 month term position for the state, for which I was upgraded to a 9 month a year position that has potential to renew. I wouldnt say I had gainful employment in VA until I was upgraded in september, and even then since it has to be renewed every year I don't know how that falls as far a temporary/permanent, gainful/non-gainful. I don't have a permanent residence in VA, I was back and forth between living with my fiances parents and renting a house in 2019. I didn't live in NY in 2019 or earn any income there. All of my income is from working in VA. Do I need to file taxes with NY at all if I did not earn income there? I wish to still be considered a resident of NY because I might intend to return, or move to a different state entirely. Do I file as a resident or non-resident of VA if I don't neccessarily intend to establish permanant residence? I guess part year residence filing wouldnt be appropriate since I didn't live in NY. 

And im very confused about how my drivers licence works into state residency if anyone can give me guidance on that. If I file as a resident of VA does that mean I need to change my drivers licence to VA as well? Can I file as a resident of VA without holding a VA drivers licence? 

[BillM223]

This is an area with some grayness to it. Here are various definitions from he State of New York:

"You are a New York State resident for income tax purposes if:

• your domicile is New York State (see Exception below); or
• your domicile is not New York State but you maintain a permanent place of abode in New York State for more than 11 months of the year and spend 184 days or more in New York State during the tax year. Note: Any part of a day is a day for this purpose."

Your domicile is 

"In general, your domicile is:

• the place you intend to have as your permanent home
• where your permanent home is located
• the place you intend to return to after being away (as on vacation, business assignments, educational leave, or military assignment)"

Note this line "You can only have one domicile. Your New York domicile does not change until you can demonstrate that you have abandoned your New York domicile and established a new domicile outside New York State."

Driver's licenses are just one factor into figuring out your domicile, along with where you get your mail, where you have a land line (if one), where you are registered to vote, and so on.

If you are considered a resident of NY, then, yes, you will have to files a NY tax return, even if you end up not owing anything. You will definitely have to file a VA tax return, because you worked there.

You can file as a resident of New York even if you didn't "live" there if you consider yourself a resident of NY under the definitions above. If you consider yourself as not moving your domicile (read the definition) to Virginia during the year, then you would file a VA nonresident return, even if you spent all your time there. Since you almost certainly has VA state taxes withheld, you will want to do this anyway.

Remember that in general, you will want to enter the data for your nonresident state first, then your resident state.

[rsclflat]

I'm leaning toward full year resident of Virginia. Largely because of how it asks when you go to do a non resident return if you're sure that you worked there but did not live there at any time during the year. I feel like I would be lying if I said I lived in NY even though I was employed most of the year in Virginia. Is this  just a phrasing difference between the actual forms and how turbotax presents it, in regards to the whole "domicile" thing? What is the permanency of changing state residency for tax purposes? If I change my state of residence for tax purposes does this affect any other aspect of my life, as far as where im allowed to have a drivers licence and bank account especially, and where id be considered for in state tuition? Maybe I should just file as a NY resident.

[DianeC958]

Yes it does make a difference where you declare residency for state tuition.  If you are going to school in New York State and you claim Virginia as your state of residence then you will pay out of state tuition for the school in New York.

Any state that you worked in during the year that is not your resident state you will need to file an non-resident tax return for the income.

Link to Multiple States and Where to File

[TomD8]

Here is Virginia's law regarding residency for tax purposes:

A person who lives in Virginia, or maintains a place of abode here, for more than 183 days during the year, or who is a legal (domiciliary) resident of the Commonwealth, is considered a Virginia resident for income tax purposes. Residents file Form 760.  https://www.tax.virginia.gov/residency-status

A rented house would be considered a "place of abode".  And note that the definition says nothing about having or not having a Virginia driver's license.

[rsclflat]

It asks when you go to do a non resident return if you're sure that you worked there but did not live there at any time during the year. I feel like I would be lying if I said I lived in NY even though I was employed and lived pretty much all of the year in Virginia. Is this  just a phrasing difference between the actual forms and how turbotax presents it, in regards to the whole "domicile" thing? 

[TomD8]

The money you earn from working in Virginia is fully taxable by Virginia, regardless of whether you file as a resident or non-resident of VA.

VA law on whether or not you are considered a VA resident for tax purposes is quoted in my previous answer.

I would also point out that a state's definition of "resident" for tax purposes may or may not be the same as that state university's rules as to who qualifies for in-state tuition.