Statutory resident

New York and Connecticut both tax statutory residents, and so do some other states. In both, you must meet two conditions: a home that qualifies as a permanent place of abode, and more than 183 days in the state.

New York counts any part of a day in the state as a full day. Traveling through, or boarding a plane, train, bus or ship to leave, does not count. Say your domicile is New Jersey and you lease a Manhattan apartment all year. You spend 150 workdays and 20 weekend days in the city. On 15 more days, you work from home in New Jersey and come into the city for dinner. That makes 185 days, so New York taxes you as a resident. New York City does too, since the apartment and the days are in the city. Without the dinners, you would stay a nonresident at 170.

As a statutory resident, you file Form IT-201, New York’s resident return, and New York taxes all your income. Your domicile state, if it has an income tax, taxes you as a resident too. Each state’s credit for the other’s tax covers only income sourced to that other state, such as pay for days worked there. Interest, dividends and stock gains are not sourced to either state, so both may tax them in full.

Connecticut offers its statutory residents a credit for the domicile state’s tax on investment income. It applies only if the domicile state gives people domiciled in Connecticut a matching credit.