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Old 01-21-2009, 05:38 PM
 
46 posts, read 129,387 times
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Default City and State Taxes for NYC???? Working from home. Do i have to Pay?

I work from home , I'm a traveling salesman. Here's the story:
1. My company is based in KY.

2. I used to live in Atlanta, but then moved out of my house and just traveled 100% of the time, living out of hotels, rental cars etc.. to get our company off the ground. I've done this for 2 years. Our company is distributed, some people live/work in Kentucky, while others are in Denver etc.. Employee taxes are withheld for the states that they live in. On paper I live in florida thus I pay 0%.

3. We're doing well now, and I have my home address listed as one of my friends in Orlando florida ( I pay her electric bill in my name - for a paper trail) and I stay there when I am there on business once a month. Florida has no state or city income tax, so it saves me A LOT of money ( I make $150K+ per year)

4. Things are starting to slow down for me and I need a home again ( living on the road 100% is really tough)

5. I have a ton of friends that live in NYC ( manhattan) - I really want to live there.

Here's the question:

Since I work from home and my company is based out of Kentucky, how can I live in NYC and not pay the really high state and city taxes? how does the cty know you are living there? is it because your electric bill?

Do I sublet?
Do I get someone else to register my utilities and pay them cash? ( remember on paper I live in Orlando, FL)

I travel a bunch for work, and really only will spend a week or two there a month, there is no reason to go pay the city and state taxes if I dont have to.

Any suggestions would be appreciated.
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Old 01-21-2009, 06:37 PM
 
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You can't. If you live in NYC and earn money, regardless of where the company is based, you pay taxes: NYC tax, NY State tax and Federal Tax. New York City Department of Finance

You're asking about committing fraud. And asking someone else to aid and abet you in this fraud. Good luck.

How do they find out? Believe me, they have ways.
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Old 01-21-2009, 07:01 PM
 
Location: Washington, DC & New York
9,339 posts, read 15,374,241 times
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In a word? Yes, you have to pay income tax. Welcome to New York.

There's no legal way around it, since if you have a lease in your name and are living in the city, how can you claim that it's not a primary residence? It doesn't matter what you have in another state that may or may not substantiate residency, it depends upon where your primary residence is, from which you work and from where you go on the road. You should also have a driver's license from this jurisdiction as well, regardless of car registry as the car can be registered to a different residence if it's garaged there.

Now, you can minimize the tax vs. rent/mortgage burden by living near NYC, but not in the heart of Manhattan, which saves the city tax. And, lower rent/mortgage might compensate for the state taxes as you would not be paying Manhattan prices as well, but that's about all I can think of to tell you.
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Old 01-21-2009, 07:10 PM
 
46 posts, read 129,387 times
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I assume the only way would be to purely sublet an apartment where the utilities are paid? then I wouldn't be a "resident" of the city. Is that correct?
The only reason why this is a question is for the last 2 years I literally have been off the grid. Seriously I have been living out of hotels, traveling, and jumping around every day of the week. It's not a normal situation - thus it has been a bit beneficial for me as I have just "lived everywhere" -- few weeks here, there, in and out of the country.
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Old 01-21-2009, 07:13 PM
 
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Also does anyone know the city and state tax rates for NYC????
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Old 01-21-2009, 07:14 PM
 
46 posts, read 129,387 times
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Quote:
Originally Posted by Viralmd View Post
You can't. If you live in NYC and earn money, regardless of where the company is based, you pay taxes: NYC tax, NY State tax and Federal Tax. New York City Department of Finance

You're asking about committing fraud. And asking someone else to aid and abet you in this fraud. Good luck.

How do they find out? Believe me, they have ways.
If I have to pay the taxes, I will, but I was really asking to see what I HAVE TO DO if I want to live from there part time , etc... I do wonder how they find out thou?
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Old 01-21-2009, 07:15 PM
 
7,081 posts, read 24,184,135 times
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Quote:
Originally Posted by bolen78 View Post
I assume the only way would be to purely sublet an apartment where the utilities are paid? then I wouldn't be a "resident" of the city. Is that correct?
The only reason why this is a question is for the last 2 years I literally have been off the grid. Seriously I have been living out of hotels, traveling, and jumping around every day of the week. It's not a normal situation - thus it has been a bit beneficial for me as I have just "lived everywhere" -- few weeks here, there, in and out of the country.
Even IF you could find such an apartment (best of luck doing THAT), you would still be a resident. You are not correct.
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Old 01-21-2009, 07:23 PM
 
46 posts, read 129,387 times
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Quote:
Originally Posted by Viralmd View Post
Even IF you could find such an apartment (best of luck doing THAT), you would still be a resident. You are not correct.
Thanks for the info, looks like I can kiss another $1200+ a month away for city and state taxes then if I move to NYC. - that really sucks given that I would only be there some of the time - it makes the decision to move to NYC pretty hard -- looks like the city taxes are around $2000 + 3.86% per year, then an additional 6.8% for state taxes - so roughly 10% plus $2,000 - that's harsh, no wonder everyone I know that works there is broke.
It's pretty nice financially right now not being a resident of anywhere, but I do have to settle down someplace.....
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Old 01-21-2009, 07:26 PM
 
Location: Washington, DC & New York
9,339 posts, read 15,374,241 times
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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.
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Old 01-21-2009, 07:27 PM
 
46 posts, read 129,387 times
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Quote:
Originally Posted by bmwguydc View Post
In a word? Yes, you have to pay income tax. Welcome to New York.

There's no legal way around it, since if you have a lease in your name and are living in the city, how can you claim that it's not a primary residence? It doesn't matter what you have in another state that may or may not substantiate residency, it depends upon where your primary residence is, from which you work and from where you go on the road. You should also have a driver's license from this jurisdiction as well, regardless of car registry as the car can be registered to a different residence if it's garaged there.

Now, you can minimize the tax vs. rent/mortgage burden by living near NYC, but not in the heart of Manhattan, which saves the city tax. And, lower rent/mortgage might compensate for the state taxes as you would not be paying Manhattan prices as well, but that's about all I can think of to tell you.
I see your point here, the best way to live in the CITY would be to live near it outside the city like in NJ, and not pay the city taxes for NYC.... I'll have to think about that - it's a bummer that the city taxes and state taxes are so damn high.
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