New York Domicile Rules (IT-201-I)

Summary

This document outlines New York State’s income tax residency rules, defining a resident as someone domiciled in New York or someone who maintains a permanent place of abode in the state for more than 11 months and spends at least 184 days there. It explains that domicile is the place intended as a permanent home, requiring clear and convincing evidence to change, and lists factors such as home size, employment ties, time spent, and family connections. Special provisions exclude certain undergraduate students’ residences from the definition of a permanent place of abode, exempt qualifying military personnel and spouses from the statutory residency test, and allow domiciliaries to be treated as nonresidents if they meet strict day-count and foreign-country presence tests (Group A or Group B).

Holdings

1. An individual is a New York State resident for income tax purposes if their domicile is New York, or if they maintain a permanent place of abode in New York for more than 11 months and spend at least 184 days in the state. A domicile in New York does not confer residency if the individual meets all the conditions in either Group A or Group B, which generally require no New York abode, an out-of-state abode, and limited presence in New York.
2. A change of domicile must be clear and convincing. Primary factors include comparing the size, value, and nature of use of residences, employment and business connections, amount of time spent, location of items with sentimental value, and close family ties. Easily controlled factors like voter registration, driver's license, and will location are not primary factors.
3. A residence maintained by a full-time student enrolled at an institution of higher education in an undergraduate degree program leading to a baccalaureate degree and occupied by the student while attending the institution is not a permanent place of abode with respect to that student.
4. Full-year New York State residents are subject to the special accrual rules only if they have accrued income for the taxable year and they were a nonresident on the prior December 31 or will be a nonresident on the following January 1.

Questions Presented

1. Criteria for determining New York State residency for income tax purposes
2. Definition and establishment of domicile
3. Definition of permanent place of abode and exception for undergraduate students
4. Exceptions to residency for individuals with a New York domicile under certain conditions (Group A and Group B)
5. Definition of nonresident and part-year resident
6. Special accrual rules for full-year New York State residents
7. Net operating loss deduction limitation for New York State residents