Move from NYC to DC - Maintaining Permanent Place of Abode in NY

[jackschillaci]

I recently moved from New York City to Washington DC, and am domiciled in DC now.  I still own an apartment in New York City, however, and have been present in New York City for more than 50% of the calendar year.  My employer is located in DC.

As a result, I understand that I will be considered a New York State/City tax resident for the full calendar year even though I have moved.  I believe that I am also considered a DC tax resident because my domicile has changed, however.

My question is how I handle tax obligations.  I believe that both NY and DC offer tax credits for taxes paid to other states, but that the NY credit is only available if the other jurisdiction does not offer such a credit.  As such, I suspect that at the end of the day, I will end up paying NY tax for the entire calendar year, and I will file a DC part-year return to obtain a credit against what I would have owed DC.  I am currently having DC withholding on my paycheck, and I will submit Estimated Taxes to NY for the rest of my income at the end of the year, and then I believe that I can just seek a refund of the DC withholding.

Does this sound right?  Or should I be paying DC tax for the portion of the year that I am domiciled there and getting a credit on my NY taxes for that amount?

Any advice greatly appreciated!

[tagteam · Accepted solution]

You might want to contact Support if you do not get an answer here today.

What is the TurboTax phone number? (intuit.com)

If you consider NYC your "permanent home", however, a place to which you will always return, then you are a NY domiciliary (note that you can still be a resident of both jurisdictions).

[jackschillaci]

Thanks for this.  I will consider reaching out to TurboTax in a few days if I haven't heard.

I don't really consider NY my "permanent home."  I have lived in NY for a long time (19 years), and I obviously have many friends there, but I wasn't raised there and have no family in the area.  I own property there, obviously, and I may end up coming back at some point, but for the foreseeable future, I anticipate that I will live in Washington DC.  I expect that at some point I will either lease out my apartment or sell it, but I am holding off on doing so at least for now.

I know that NY takes a hard line on people claiming that they have changed their domicile, but I am skeptical that they'll be able to make a meaningful case that I remain a NY domiciliary in my case.

[TomD8 · Accepted solution]

You are a New York State resident if your domicile is New York State OR: you maintain a permanent place of abode in New York State for substantially all of the taxable year; and. you spend 184 days or more in New York State during the taxable year.

https://www.tax.ny.gov/pit/file/nonresident-faqs.htm#:~:text=You%20are%20a%20New%20York%20State%20re....

Thus for this year you must file as a full-year resident of New York.

Since you became a domiciliary resident of DC this year, for this year you are also a part-year resident of DC, which obligates you to also file a part-year resident DC tax return.  DC allows a credit for taxes paid to other states on income also taxed by DC.  Thus you may claim a credit on your DC return for the taxes paid to NY on the portion of your NY income that you earned after you became a domiciliary resident of DC.

https://otr.cfo.dc.gov/page/audit-division-frequently-asked-questions#:~:text=Does%20the%20District%....

[jackschillaci]

Thanks for this - this is consistent with my understanding!