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You can avoid city tax by living in a close-in suburb, 15-30 minutes away from Manhattan by train, and a short car ride away as well. It's not the same experience as the city proper, however, but it does reduce the tax burden until such time as you'd be home for a longer period of time and want to settle into the city.
As a part-time resident, you would file a nonresident income tax return with New York. However, this can be claimed only if you have a primary residence in another jurisdiction.
There are many ways it could come to the attention of the revenue authority, including a simple, random audit. Travel patters could easily establish where your true residence is, along with spending habits, etc. This has been challenged in recent years by sports figures claiming Florida residency, and they even analyzed the EZPass toll transactions to prove the number of days in New York.
It's a red flag with Flordia, however, since many people in New York have residences in both states, which is perfectly fine. However, one state must be primary, and substantiated. You cannot just claim an electric bill and not pay taxes on income in New York. That would never pass muster.
Sounds like you really know your stuff, so -- It looks like If I really want to live in NYC I just need to suck it up, move in and pay the normal taxes and kiss the roughly 10% total taxes away.
I'm staying at a friends house for 2 months in nyc, so I should be able to gauge to see If I really like NYC.
It's really attractive to move down to florida ( since I work from home) and save all this money!!!
It's a good idea to gauge an area like that, visiting for a couple of months and determining if it's worth it to you. Florida does have savings in taxes, but you'll have to judge as to whether or not it can replace the NYC experience. For some, it's worth it to pay the high rent/mortgage and taxes for the New York experience, for those who could conceive of living nowhere else. And, then for others, it's better to have a residence in another state and visit NYC frequently, experiencing the best of both worlds. It's all in perspective and whether or not the lifestyle afforded is worth it from your own perspective.
It's a good idea to gauge an area like that, visiting for a couple of months and determining if it's worth it to you. Florida does have savings in taxes, but you'll have to judge as to whether or not it can replace the NYC experience. For some, it's worth it to pay the high rent/mortgage and taxes for the New York experience, for those who could conceive of living nowhere else. And, then for others, it's better to have a residence in another state and visit NYC frequently, experiencing the best of both worlds. It's all in perspective and whether or not the lifestyle afforded is worth it from your own perspective.
thats the big debate right now..... I could go down to florida live super cheap ( rent around $1,000 a month) , and take the extra $2,000 or so in savings and just fly to nyc a few times per month for fun. it's a really hard decision, right now I'm actually trying to think just how I can make up the difference with working harder, or making cash on the side to compensate the city taxes in nyc. I'm sue I could drum up a cash inflow that's off the books to compensate for the extra money spent for living in the city.
INQUIRY regarding NYC taxes & deduction of rent for home office
I am moving to NYC in about 3 months & renting an apartment in Manhattan. I am self-employed with a small online business which means working on a computer 5-8 hours a day from my apartment. I was not aware of how steep NYC taxes are. So, do I understand correctly, that along with my state and federal taxes I have to pay an additional $2,000 (?) + 3.8% of my income for NYC taxes? Could someone explain this exactly? Also, I understand that you can deduct a certain % of rent if you work from home as long as you have a specific area set aside that is exclusively for work....Well, obviously this is not always easy to calculate but in a e.g. 800 square ft. apartment, what % would be appropriate to deduct in taxes.
I am moving to NYC in about 3 months & renting an apartment in Manhattan. I am self-employed with a small online business which means working on a computer 5-8 hours a day from my apartment. I was not aware of how steep NYC taxes are. So, do I understand correctly, that along with my state and federal taxes I have to pay an additional $2,000 (?) + 3.8% of my income for NYC taxes? Could someone explain this exactly? Also, I understand that you can deduct a certain % of rent if you work from home as long as you have a specific area set aside that is exclusively for work....Well, obviously this is not always easy to calculate but in a e.g. 800 square ft. apartment, what % would be appropriate to deduct in taxes.
Yes, you'll have to pay NYC taxes. You need to talk to an accountant about taking a deduction for a home office, because it's very difficult to prove that it's used exclusively for work.
I will be moving to NYC for work from North Carolina, but my family will stay back in North Carolina for 7-8 months to finish up the school year and I'll commute back on the weekends. I realize I'll have to pay NY state income taxes and will receive a credit to NC taxes, but will I have to pay NYC income taxes too if I have an apartment in Manhattan? I own a home in NC.
As far as I know, you only pay NYS and NYC income tax for monies eamed while in the state even if you primary residence is in NYC.
If you travel a lot, then you keep a diary and the income you earn when outside NYC is not taxable by either NYS or NYC.
I don't believe this is true. If you are a NYC resident, you are taxed on income from all sources. This may not hold true if you are partial-year resident, but that's something to take up with the accountant.
folks play a dangerous tax and auto insurance game all the time claiming another state they have property is really their primary home .
becareful with playing around with registering your car in other than your primary residence state.
while you can get a drivers license in any state you have property ,insurance law is very different.
you must register and insure your car in the state its primarly garaged and driven in. its insurance fraud claiming your a primary resident in say pennsylvania because you have a 2nd home but you really are full time ny residents .
with ez-pass,cell phones,smart phones etc its a cake walk for authorities to know where you spend 183 days a year.
most states and insurance companies love catching those ripping the state off by claiming full time residency when they really work and live in nyc.
the reason is federal law says that insurance companies and the state must elevate you to whatever the min requirement is in whatever state you drive in.
so while pa requires say 25k min insurance ,new york is 50k.... if you drive in new york and claim pa as your home state then your home state and your insurance company have to cover you for 50k even though they are only charging you for 25k and they have to pay any claim over 25k for you out of their pocket..
if your not a full time resident and paying taxes to pa they would like nothing more than to nail you on insurance fraud by you actually living and driving in new york full time and making pa pay for any accidents.
most laws through out the country follow suit so lying about your full time resident state can be both tax fraud and insurance fraud.
the beauty of it all is the state only has to audit you. the burdeon of proof as to where you spend 180 days a year is on you. you have to provide those phone records, ezeepass, etc to document where you are .its childs play for them to pin someone today.
we all know people doing this and getting away with it ,that is until they dont. my co-worker got busted recently when a disgruntled tenant ratted on him in anger over something.
now he has tax fraud issues,insurance fraud and a host of other things that exploded by lying.
Last edited by mathjak107; 11-28-2011 at 02:42 AM..
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INQUIRY regarding NYC taxes & deduction of rent for home office
