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March 12, 2024
Question

What should I choose for state of residence if I live in Hong Kong for most of the days in 2023?

  • March 12, 2024
  • 1 reply
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I didn't go back to New York in 2023

1 reply

DMarkM1
March 12, 2024

It depends. You could still be a NY resident if your domicile is in NY.  Further, you must have taken steps to abandon NY as your domiciled state.  Here is the NY reference (extracted below).   

 

If you are still domiciled in NY you would select NY as your resident state for all of 2023 and include all income.  You may be able to use the "Foreign Income Exclusion" if you meet one of the tests.  That would exclude some or all of any foreign earned income from Federal and NY gross income.  Here is a link with more information on the foreign earned income topic.

 

In TurboTax in the "Wages & Income" section using the "Less Common Income" dropdown you will find the "Foreign Income Exclusion" topic.  

 

If that is the case you can select "Foreign/US possession" as your resident "state" in the "My Info" section. No state return would be generated.  The "Foreign Earned Income Exclusion" may still apply on your federal return.

 

"Generally, you are considered a New York State resident for income tax purposes if you are domiciled in the state.

 

...your domicile is your permanent and primary residence that you intend to return to and/or remain in after being away (for example, on vacation, business assignments, educational leave, or military assignment).

 

...your New York domicile does not change until you can demonstrate with clear and convincing evidence that you have abandoned your New York domicile and established a new domicile outside New York State. This means shifting the focus of your life to the new location. It is not enough simply to file a certificate of domicile or register to vote in the new location. All aspects of a person’s life are considered in determining whether a person’s domicile has changed."

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