New York Taxation & Reporting of Foreign Income

Do You Have to Pay New York State Taxes on Foreign Income?  

New York Allows You To Be Domiciled But Not Pay State Income Tax 

If you are domiciled in New York, you will be considered a nonresident if you meet all 3 of the conditions outlined for either Group A or Group B:

GROUP A

• You did not maintain a permanent place of abode in New York during the tax year.
• You maintained a permanent place of abode outside of New York during the tax year.
• You spent 30 days or less in New York during the tax year. 

GROUP B

• You were in a foreign country for at least 450 days during a period of 548 consecutive days. 
• During the 548-day period, you were not in New York more than 90 days and you did not have a permanent abode in New York. 
• During the nonresident part of the tax year in which the 548-day period either begins or ends, you were in New York for no more than the number of days that bears the same ratio to 90 as the number of days in such portion of the tax year bears to 548. use the following formula:

Number of days in nonresident portion/548 x 90 = maximum days allowed in NY

Filing Requirements: If you were in a foreign country for an entire tax year and you meet all the conditions of Group A, you are considered a nonresident of New York for that year.  If you meet the conditions of Group B, you must file Form IT-203 for the tax year in which the 548-day period began. For the part-year resident period, include items of income, gain, loss or deduction up to the time you changed residence.  For the nonresident period, you must also include these items if they are derived from New York sources. 

If you can take the earned income exclusion, you can also claim it on the New York State income tax return in the federal amount column.  Be sure to attach a copy of the Form 2555 to the New York return. 

When you are ready to have your return prepared please send me an email to get the process started. 

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