State Residency question - A bit complicated

[Rob58Por]

Hi All, I am doing my daughter's taxes and need help in establishing her residency for 2021 tax  purposes.  She lived in CA until she got a job with a multinational and her job is "based" out of New York. Hence, she moved at the beginning of 2021 to NYC and she has an apartment there, pays bill, etc.  The address on her W2 is also her NYC address.  However, her driver's license (even though she does not drive anymore) is CA as well as she is a registered voter in CA.   What would her state of residency be then?  She seems to have some of the criteria for CA and/or NY!  Any help greatly appreciated.  

[Carl]

If she moved to NY with the intention of staying there, she is a NY resident. So if she left CA in 2021, that means she would file a CA part-year resident return, and a NY part-year resident return for 2021.

[MaryK4 · Accepted solution]

In general, state residency is based on DOMICILE, which includes many factors.  One that is difficult to prove is INTENT, because it is what she was thinking at the time.  In her case, she moved to New York for the job; but her intent may have been to go back to California after a year or to stay in New York forever.  The states will look at all factors but based on facts and circumstances, she most likely is a New York resident.  (That being said, she should get her new license and change her voter registration.) 

Also, in her case, since she worked in New York, even if California tries to say she is still a resident, she will be required to pay the New York taxes and then qualify for a credit on the California tax return.

See Frequently Asked Questions about Filing Requirements, Residency, and Telecommuting for New York Stat... and Guidelines for Determining Resident Status (FTB Publication 1031).

[Rob58Por]

Makes sense!  Thank you.

[Rob58Por]

Thank you Carl!