Hi,

I am a man in my 20's and currently live in Jersey City. I work from my apartment every day. I would prefer to live directly in NYC (for lifestyle reasons), but do not currently do so in order to avoid the NYC resident income tax.

However, what if:

1) I share an apartment in NYC with a friend. However, only his name is on the lease. He pays the monthly rent in full to the landlord, and I pay my share to him in cash under the table.

2) My friend (who lives in NYC already) rents another apartment in NYC. Only his name is on the lease. He pays the monthly rent in full to the landlord, and I pay that full amount back to him under the table.

With both of these methods, my official domicile would be my parents' house located in another state within the US. My friend and I share no connections on any paperwork, so it should be difficult/impossible to link our names together (i.e. it's not like my parents are renting an apartment in NYC in their name for my to live in, in which case it would be obvious to tax regulators that I am trying to avoid paying NYC taxes with some loophole).

Are these viable methods of avoiding the NYC resident income tax?

I really appreciate any comments you may have. Thanks!

- Chris

I do not think so;A finding of nyc residency against any individual living outside of New York but leasing residential property in New York may result in severe tax consequences. The New York City tax regimes are fraught with traps for unwary nonresidents and part-year residents. In order to avoid significant tax consequences, it is essential for any non-resident with a dwelling in New York to be aware of the applicable residency tests and to prepare properly tax returns and to maintain appropriate records and other legal documents in order to avoid the New York residency tax trap. While NYC nonresidents are not taxed by NYc..The Statutory Residency Test includes any individual who is not domiciled in NYS/NYC but whois physically present in NYS/NYC for more than 183 days in any taxable year. Thus, one can be domiciled in another state but still be considered a New York resident for tax purposes by meeting both elements of this Statutory Residency Test. You, as a taxpayer, seeking to establish that you are not a domiciliary of NYS/NYC bear the burden of proof under a subjective facts and circumstances test that weighs relevant facts. Factors considered include your voter registration, driver’s license, vehicle registration, location of safe deposit box, location of furniture and possessions, and location of personal items such as photos, collections, and heirlooms. Proper planning is essential to establish your intention to establish a permanent home outside of NYS/NYC.


You may still be considered a nonresident if it can be demonstrated that you were not physically present in NYS/NYC for more than 183 days in the taxable year. Physical presence means being physically present in New York for at least one moment during the day. Physical presence does not include travel through NYS/NYC or travel into NYS/NYC solely for transportation connections. you bears the burden of proving that you were not in NYS/NYC for not more than 183 days. You, as a part-year resident who acknowledges spending close to 183 days in NYC will unwarily increase the likelihood of a residency audit.