So sorry to have to be the messenger here, but NY will argue that you're a NY resident now ... See this:
Here's how they put it:
A New York State resident taxpayer is responsible for reporting and paying New York Statepersonal income tax on income from ALL sources regardless of where the income is generated,or the nature of the income.
Is this income from NY sources?
As far as showing residency in WAno, not withouth geting mail there, having a driverslicense, etc
Here's what Washington shows in terms of THEIR residency:
The Department of Revenue presumes that a person is a resident of this state if he or she does any of the following:
Persons may rebut the presumption of residency if they provide other facts which show that they do not intend to reside in this state on either a temporary or permanent basis. A Washington resident who intends to move at a future date, however, will be considered a Washington resident.
It is for selling a book to a publisher. I live with my boyfriend whose apartment it is, so technically I do not have a lease showing my residence in NY. I could have written this abroad or in another state, but of course do not have any permanent residence elsewhere to show.
Is the publisher in NY?
But if I lived in another state, it shouldn't matter where the publisher is
K, that's part f the puzzle ... NY will say this is NY source income
Why would the location of the publisher impact this? It shouldn't.
the WA residency (if you could establish something there for more than half a year MIGHT be a strategy ... yes "Source Income" is a tax term of art. means the money was earned from doing business in NY
If you had no residency established elsewhere AND earned the money from a NY publisher they will want to tax it ... Now, if you could establish residency elsewhere ...
I am originally from Oregon and my parents still live there. How would that impact my state taxes vs. NY state taxes for this income?
Here's an excellent piece called avoiding the NY Residency tax trap, (NY Law firm ofAckerman): http://www.akerman.com/documents/res.asp?id=1089
If you can establish residency in Oregon, then you would pay income there
and if NY still tries to tax you ... and they might, then you WILL get a credit on your Oregon for the tax paid on your NY non-resident tax return
If I can establish some link to WA state before the end of the year that would last for at least 6 months into 2014, and I get the payment in February, can I still avoid state taxes in NY?
Establish a link - i.e. one of the items you listed for WA residence
regon imposes a personal income tax on all residents of the state under the authority of ORS § 316.037(1)(a) (2010). By statute, an individual is a resident of Oregon under two scenarios.
A. An individual who is domiciled in Oregon, unless he a) does not have a permanent place of abode in Oregon; b) maintains a permanent place of abode in a place other than Oregon, and c) spends less than 31 days of a taxable year in Oregon. ORS § 316.027(A)(i)-(iii).
B. If an individual is not a domiciliary, they may be a resident if he maintains a permanent place of abode in Oregon and spends more than 200 days of a taxable year in Oregon unless the individual can prove he is in Oregon for a temporary or transitory purpose. ORS § 316.027(B).
Oregon modeled ORS 316 after New York residency rules. Ramsey v. Dept. of Rev., 7 Or. Tax 478, 482 (1972). The residency requirements were changed in 1969 to grant tax relief to individuals who do not receive the benefits and protections of the state and to ensure that those who do receive the benefits and protections contribute to the support of the State. Id.
What multistat issue always come down to is (1) looking at the tax rates of the two states and seeing which will be less (again, please don't shoot the messenger here:), but neither Oregon noe NY are great income tax states ... both HAVE an income tas and both are relatively high (compared to some other states)
If you ave more ties to oregon, and IF you filew a return there, youmay ever hear from NY
but NY is pretty agresive... you can bet that the publisher will report the payment so that they get their tax DEDUCTION
just trying to help you "see around some corners"
I appreciate the help! I understand that the publisher will deduct the payment as their expense, but that shouldn't say anything about where the payment was EARNED. If I open a bank account in OR or WA, and deposit there, it should be fine, no?
Pretty open ended, relatively speaking ... the tax year IS 2014
Just may work
I understand how they consider someone a resident, but I'm trying to clarify that if I can show residence using one of the items listed in WA before the start 2014, can I get out of NY taxes for income earned before the 6 month requirement?
Or do they consider it only at the end of the year, which will satisfy the 6 months
No... first everything is done on a TAX year basis ... you'll receive the $ in the tax year 2014 ... if you can establish residency in WA for 2014... you're there
Ok, great. Thank you.
If you can answer this last question, we're all set:
No it doesn't other than (1) the address they have n file for where they send your 1099 ... and again simply opening a ban k account in WA alone, won't do it... youi need to complete AS MANY things on that list as possible
they WILL report to IRA that they paid you ... a Washing address on that 1099 might go a long way
sorry "...IRS that they paid you."
Okay, thank you!!
your federal return information will flow to whatever state you file a return for
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