Which address to use on docs for filing taxes next year

[lcboy44]

My permanent home has been in CT as I was living with my parents and I have all my accounts/docs for there (W-2, license, etc). During the pandemic, I worked remotely from there as well. Recently, I am back in the office and thus rent an apartment in New York City to physically live and work during the week to make commuting easier. I make my income in NYC. My employer has the CT address on the W-2 and in their system. I will probably reside more than 180 days in NY. Does that technically make me a resident of NY and not CT? Should I change my address with my employer so that even my paychecks change to NY address or does that not matter - how does that affect withheld taxes? NYC has a city tax, when I file my taxes, do I put my New York apartment as my permanent address for taxes since technically that is where my income comes from? If I do not make my income in CT will I be taxed there? What about capital gains? Where are those taxed, the state you make most of your income or the state that you have as your address on brokerage accounts when those were set up?

Want to be prepared when I file for next year. 

[ThomasM125]

Your tax home is typically where you work and live, unless you are away temporarily. Assuming you don't plan on leaving your job and returning full-time to Connecticut, the New York taxing authorities would likely consider that to be your residence. Also, you have an apartment there and don't have the same in Connecticut.

You should change your address with your employer to make tax filing more accurate and simpler. When you do that, just New York taxes will be withheld from your pay. Your income would be taxed in Connecticut if you claimed to be a resident there. Capital gains would be taxed in the state you reside in if from investment in securities, as opposed to gain from the sale of real estate.

[lcboy44]

Thank you. When I set up my brokerage accounts years ago, I put my CT address when setting those up. Does that matter or do I need to change that too? For any capital gains from securities investments, would that be income in NY or CT since the accounts have the CT address on file? If I’m making money from the investments while physically residing in NY, isn’t that income in NY?

[AmyC]

Yes. Your physical location is what determines where you receive the money. If you are investing in any bonds that may be state exempt, NY would be better than CT so your broker may need to be aware of the change. If you still receive mail at your CT address, your broker won't care. For your tax return, use your NY address where you can receive any letters from the IRS in a timely manner.