New York Residency Issues for Commuters

There are many individuals in the tri-state area who live in the suburbs of New Jersey or Connecticut and work in New York State and/or New York City.

If that individual maintains (owns or leases) a residence in NYS or NYC, such as an apartment in NYC or a vacation home in the Hamptons or upstate New York, and spends more than 183 days a year in NYS/NYC, they can be subject to dual taxation on certain income in both their resident state and New York.  Many people think that a vacation home or a part-time residence in New York does not affect residency.  This is not true.

As an example, a couple who resides in New Jersey have a vacation home in Upstate New York that they use on weekends. The husband works as an employee in New York City and the wife works in New Jersey.  If the husband works the typical 240 days a year in New York City, his wages will be subject to New York State taxation and he will get credit for a majority of that tax on their New Jersey Individual Income Tax Return.  However, since a residence is being maintained in New York State, they will be considered Statutory Residents of New York and be subject to tax in both states.  The tax exposure increases significantly if the second home was in New York City.

Your tax advisor should be consulted with regard to the tax ramifications of owning a second home in a nonresident state.

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