| > | | | | days in or out of New York always count as New |
| If you’re a salaried employee and perform | | | | York days. |
| any work in New York state you are subject to New | | | | If I’m not domiciled in New York and not a |
| York state income tax. Executives and other highly | | | | statutory resident, can New York state still tax me? |
| compensated individuals are common targets for | | | | Yes. New York can and will tax you on your New |
| audit. The following addresses common questions by | | | | York source income. If you earn salary or wages, |
| salaried employees. | | | | your New York source income is the portion of your |
| If you move in or out of New York state in | | | | earnings from days spent in New York state. |
| conjunction with the sale of a business or a contract | | | | How will the state prove I was in New York? |
| to end employment, you should consult with a tax | | | | They won’t. The examiners will rely on you to |
| attorney. These issues are beyond the scope of this | | | | prove you weren’t in New York. Each day |
| Q&A. | | | | you can’t prove that you spent the entire |
| Common New York income tax audit Q&A for | | | | day outside of New York will count as a day in New |
| salaried employees: | | | | York. |
| Why is New York state auditing me? | | | | How do I prove I wasn’t in New York? |
| New York state guards its income tax base by | | | | If you do any work in New York state but are not a |
| conducting audits that can find either residency or | | | | resident, you need to maintain 1) a contemporaneous |
| New York source income. Residents of New York | | | | calendar that records your location on every day of |
| are liable for tax on their worldwide income. | | | | the year, 2) travel records, including tickets and |
| Non-residents are liable for tax on their New York | | | | itineraries that establish the times you entered and |
| source income. Typical targets for audit are | | | | exited the state. The calendar you rely on needs to |
| executives and other high income earners that travel | | | | be maintained in the regular course of your trade or |
| to New York state and file non-resident returns, or | | | | business. If you assemble it in preparation for an |
| fail to file any return. | | | | examination, it’s too late— the |
| How could I be found resident of New York? | | | | examiners will not have to accept it, and probably |
| Two ways. | | | | won’t accept it. |
| First you may be domiciled in New York state and | | | | Can I avoid New York source income by working at |
| spend at least 30 days in the state during the year. | | | | home outside of New York? |
| Domicile is a legal concept that refers roughly to | | | | Probably not. If your employer is based in New York, |
| where you’re from. You can change your | | | | working at home, even if it is outside New York |
| domicile, but only if you move somewhere that is not | | | | state, will still count as New York income unless your |
| temporary. | | | | employer requires you to work at home on that day. |
| Second, you may be a statutory resident of New | | | | For more about New York state’s position on |
| York. You are a statutory resident if you maintain a | | | | the source of income when you work from a home |
| home in New York (including an apartment you rent) | | | | office, see TSB-M-065(5)I . Do not confuse the |
| and spend more than 183 days in the state. With | | | | convenience of the employer test discussed |
| narrow exceptions, any portion of a day spent in the | | | | there with the source rules discussed above that |
| state (even a minute) counts as a whole day. Travel | | | | apply when you are not working in your home. |