Appreciate any thoughts on this (client moved, or didn't move to New York from California

[Tax Prep by Deb]

Ok, I hope someone can help me out.  I have a client who moved to New York in August.  It's not totally clear at this point if she is going to stay, but she is currently and has been since the day she moved there been working, so therefore I have a New York W2.  She is actually staying with some family members and plans on returning to California and has sort of told her mom she probably would not go back to New York when she comes back in August.  Thus she still has her car registered here in California, has kept her bank account opened here, and has her strongest family ties here, so I'm 99% sure at least for 2016 she is Domiciled in California, but the question is do I file a part year resident return for New York or a Non Resident return for New York, and if a Part year resident do I file a part year resident return for California?

My thinking is that because she is domiciled in California she is still considered a resident therefore they want to tax her on everything earned.  Any thoughts would be greatly appreciated!

 

[Ringers]

I would file her as part year resident in each state.  If she were working for one company and had earnings from both states, she would be a CA resident and a NY non-resident, which would mean that CA would allow her a credit for NY taxes paid but charge her CA tax on entire income.  Since she was working for two different employers and physically lived for part of the year in NY, I  don't think there is any way she could be classified as a non-resident for tax purposes.  As a part-year resident, she will ony pay NY tax on her NY earnings and CA tax on her CA earnings, which may turn out to be a benefit.

[Tax Prep by Deb]

31 minutes ago, RINGERS said:

I would file her as part year resident in each state.  If she were working for one company and had earnings from both states, she would be a CA resident and a NY non-resident, which would mean that CA would allow her a credit for NY taxes paid but charge her CA tax on entire income.  Since she was working for two different employers and physically lived for part of the year in NY, I  don't think there is any way she could be classified as a non-resident for tax purposes.  As a part-year resident, she will ony pay NY tax on her NY earnings and CA tax on her CA earnings, which may turn out to be a benefit.

She actually worked for the same employer, one W2 showing withholding for two states.  She transferred to New York hoping it would have more opportunity, but like I said it seems she may be a little homesick.

[Ringers]

Since she transferred to NY, and I assume the company did not reimburse her living expenses while in NY becasue it was a transfer and not short-term employment at the request of the company, I would still treat her as a part-year resident in both states.  If the company had sent her to NY for a peeriod of time, then I think NY non-resident filing would be appropriate and CA full year resident.