NY + Seattle - Tax Implication

New
cNJd43

New

cNJd43
Jun 30, 2021 7 Comments

I currently work in NY and own a home here.I am starting a new role based in Seattle in August. I do not have to move immediately. My wife will stay in NY and we are planning to move eventually selling the house in NY probably next summer.

Any idea what would be the tax implications of me renting a place in Seattle? Since I have already stayed in NY for over 6 months, I think i would be considered a resident by NY State.

I understand Washington does not have state tax. Would the fact that I own a home in NY imply that I need to pay income tax for my earnings in Seattle to NY State?
Would it make sense to just rent out a place as soon as possible in case it helps reduce the state tax?

YoE: 10
TC: 480
#seattle #ny #tax

Update:

Talked to CPA. Apparently, it only matters where your tax residence is. So if I move to Seattle and change my Driver's License, Lease a place etc. I will not need to pay state income tax on the income generated through work in Seattle. The fact that I own a home in NY will have no impact on Income Tax. Regarding my wife staying back in NY, we can still file a joint Federal Tax filing and separate state income tax filings (Joint for NY for only our combined income generated in NY)

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 TOP 7 Comments
  • Amazon
    kennysback

    Go to company page Amazon

    kennysback
    lmao you should ask tax accountant
    Jun 30, 2021 0
  • You need to ask a CPA. But why not sell the home now? It’s the best market for that. Doesn’t make sense to keep it if you’ll be renting in Seattle anyway.
    Jun 30, 2021 3
    • It’ll take you a few months to find a place to rent? It takes a few months to sell. Not sure a year is necessary?
      Jul 1, 2021
    • New
      cNJd43

      New

      cNJd43
      OP
      We were thinking that it will be a lot of upheaval in terms of changes. New jobs for both of us plus selling our home plus buying / renting a new home etc. But it seems that probably the cleanest approach would be to sell our current home and look at rentals.
      Jul 1, 2021
  • Financial Services Company / Finance
    Anon_987

    Financial Services Company Finance

     Anon_987
    You need a CPA lol.
    Jun 30, 2021 0
  • Amazon / Eng
    wawY45

    Go to company page Amazon Eng

    PRE
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    BIO
    I'm a no-man.
     wawY45
    Noone knows this shit. If you find out, please share.

    At half a mil TC, I presume NYC might as well go after you if you decide you're not a resident anymore.

    The trickiest part is that there's no forms for WA to file, so, you wouldn't be able to as easily prove that you paid your taxes to another state.
    Jun 30, 2021 0