Has anybody disputed NYC residency and won? I moved out of state and bought a house late 2024. For the 2024 tax year I said I was a NYC resident and had no issues.
This year I filed as a non resident and they are disputing it saying I was a part year resident. HR did not update my address from NY in time and I ended up leaving that job before they did so I had NYC taxes taken out for a few months even though I didn’t live or work in the state (my job was not in NY either). Now I have a bill of $2400 due today. I submitted a response to the letter with my mortgage statement, new license, and utility bill but haven’t gotten a response. They said it could take 180(!!!) days to get one where interest will accrue the entire time!
I’m confident I can win this dispute (especially because NY state agreed that i am a non-resident of the state lol) but if the off chance I lose I’d owe a ton in interest. Has anyone taken a chance like this? I don’t want to pay $2400 and wait 6+ months to get it back. It’s not exactly chump change…
TLDR; NYC says I was a part year resident and sent a $2400 bill. I submitted documentation to show I live elsewhere but I won’t get a response in a timely matter. Now I have to decide if I should pay the money while I wait or let it accrue interest and hope I win.
Posted by brightlight12234
3 Comments
I worked part of 2020 in NY and had to pay taxes to both NY and my home state even though I was not a NY resident.
“Especially because NYS agreed I was a non-resident”
Where did they agree to that? I don’t see that anywhere in your post.
The burden of proof on a residency dispute is on you and you need to provide clear and convincing evidence. It sounds like you didn’t keep any ties to NYC/NYS but it is your responsibility to make the case for this since you are being audited. As long as you don’t own or rent a residence in NYC it should be straightforward to prove that you really changed domicile.
You might consider also submitting your resident tax return in your new state in 2025, records of apartment sale or notice to landlord in 2024, and as much proof that you have that you actually moved to and live in the new state in late 2024. Also, if you have travel records, showing that you departed and returned to your new state for trips, or if you had any short trips back to NYC but returning home.
If you are concerned about interest you can always pay the $2,400 today and NYS will pay you interest back when they eventually refund you. They would pay you 5%.