What is a (tax) NJ non-resident?

[BarbWire]

I am domiciled in Texas, at a CMRA (ie, I "live" in a hanging file folder at a mail service.). My DL, voter's registration, etc have been there for years, and Texas is OK with it. Like many full-time RVers, I've been a "nomad" wandering North America (RV) and the world (carry-on), with no fixed abode.

Now, with people who are important to me becoming elderly, I am thinking about becoming a semi-nomad and renting an apartment to have a part-time perch near family/friends -- NJ!

If I read the NJ tax rules correctly, even if I have rented an apartment there, if I spend fewer than 183 days per tax year in NJ and still maintain my TX domicile (DL, voters reg, etc) , I will NOT be a tax-resident of NJ and will not have to file/pay income tax there, register vehicles, etc. I will have no NJ income, as all of my income comes from Vanguard, Fidelity, etc

Does that sound about right? Can I avoid being a NJ tax resident by spending fewer than 183 days/year there, despite having an apartment lease?

It seems analogous to someone who works for Company X, spends 3 nights/week in NJ and has an apartment there, but spends 4 nights/week "home" in another state.

Or a snowbird who spends 7 months of the year in Florida or Texas (and claims domicile there), and 5 months in NJ where they rent an apartment ....

What am I missing here? I really do NOT want to tangle with the NJ tax authorities!

 

[pb4uski]

That sounds right as long as you don't have any NJ income, like rental income from a property located in NJ. If youspend more than 183 days outside of NJ and non of your income is NJ income than you should be all set.

Your analogy of someone who spends 3 nights/week in NJ probably would have NJ income assuming that their work for Company X is in NJ so they would need to file a NJ tax return.

 

[BarbWire]

Good point. I was thinking about someone who works for, say, a BigTech company in another state where s/he is domiciled but is the customer account person for a client in NJ (such as a customer support engineer).

Your analogy of someone who spends 3 nights/week in NJ probably would have NJ income assuming that their work for Company X is in NJ so they would need to file a NJ tax return.

 

[Texas Proud]

I think that NJ is similar to NY... for me it was easy as company rented me an apartment and I worked 100% in NY even though I was a TX resident...

BUT, coworkers who came up to NY 2 or 3 days a week earned enough that the company was withholding state and city taxes from them for their income derived in NY... and they did not rent... they stayed in a hotel...

AND... if you are a big time athlete and play just one game there your salary is high enough for you to have to fill out a tax return...

One of my sisters owns a house in Wisconsin and makes sure she does not live there long enough to qualify as a tax resident... like you her income is all passive... I do not think she even fill out a return, but she does keep her proof that she was out of the state with her hotel receipts when going back and forth...

 

[Surewhitey]

I think that NJ is similar to NY... for me it was easy as company rented me an apartment and I worked 100% in NY even though I was a TX resident...

BUT, coworkers who came up to NY 2 or 3 days a week earned enough that the company was withholding state and city taxes from them for their income derived in NY... and they did not rent... they stayed in a hotel...

AND... if you are a big time athlete and play just one game there your salary is high enough for you to have to fill out a tax return...

One of my sisters owns a house in Wisconsin and makes sure she does not live there long enough to qualify as a tax resident... like you her income is all passive... I do not think she even fill out a return, but she does keep her proof that she was out of the state with her hotel receipts when going back and forth...

Never heard of "earning enough". DW goes to NJ for her clients but they have a physical office in DFW. She's in the home office though for most of the year.

How much is "enough"?

 

[Kings over Queens]

What am I missing here? I really do NOT want to tangle with the NJ tax authorities!

The date balance is important to hit, but also, any professionals you might engage. Per my CPA, NJ will look to who you use for legal and accounting advice, as well as medical. they will go as far as to ping cell phone towers to see if phone calls originate in the state, and ezpass records.

When he said "they will look to" this is after they've decided to initiate an investigation for tax avoidance.

Anecdotally, I had a client fire me so he could engage with a similar professional in Florida for the same reason. His explanation was "this isn't personal, I'm trying to establish residency here" (he was trying to escape NY's grip) and that was the advise his tax people gave him.

 

[pb4uski]

Never heard of "earning enough". DW goes to NJ for her clients but they have a physical office in DFW. She's in the home office though for most of the year.

How much is "enough"?

Some states don't require that a tax return be filed unless you make a certain amount.

When I was working and we did timesheets there was a state code for each timesheet entry so the form could calculate how much we earned in each state. One year I had to file 9 state income tax returns. Thank God for TurboTax!

 

[pb4uski]

I think that NJ is similar to NY... for me it was easy as company rented me an apartment and I worked 100% in NY even though I was a TX resident...

My boss's boss was a Texas resident but did a lot of work in NYC .. to an extent that he had an apartment in NYC. He kept meticulous records of his overnights to make sure that he wasn't liable for NY tax. He typically flew in on Mondays to avoid being there Sunday night and flew home to Texas on Fridays to avoid being in NYC on Friday night.

 

[target2019]

Good point. I was thinking about someone who works for, say, a BigTech company in another state where s/he is domiciled but is the customer account person for a client in NJ (such as a customer support engineer).

If you're domiciled in NJ, you pay the graduated NJ state income tax. If you work for a big tech company, I'm sure the taxes are collected and paid out to the states as due.

 

[Texas Proud]

Never heard of "earning enough". DW goes to NJ for her clients but they have a physical office in DFW. She's in the home office though for most of the year.

How much is "enough"?

Well, I really do not know as I was there 100% of the time...

From what I heard (and who knows if correct) it had to do with your salary and how many days you worked in the city/state... some people were working 60% of their days in NYC.... but office was in Houston...

From memory, but IIRC there was a very high salary exec who only worked a few days a month in NYC but still had taxes withheld...

ETA.... it looks like a pretty low bar...

If you are a New York State nonresident you must file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, if you meet any of the following conditions:

• You are a nonresident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.

 

[BarbWire]

Thanks. I will have no problem documenting that I am out of NJ for more than 185 days/year, and have no intention to establish any professional relationships here other than an auto mechanic and a hair-cutter. I had thought about using a NJ dentist but maybe not. I am retired and all of my income is investment income, so nothing earned in NJ.

I might risk it ....

 

[Texas Proud]

I would say go for it... and if you do not buy a residence it would be hard for them to find you anyhow...