Snowbird Alert! Avoid the 2015 Easter/Passover New York Income Tax Trap

BOCA RATON, Fla., Sept. 2, 2015 /PRNewswire/ -- Brenon,Lipman & Zarcone LLP warns NY/FL retirees who arrived in NY in April for the holidays to leave earlier in October to avoid NY income taxes:

Some snowbirds have an earlier deadline than last year to leave NY for FL to avoid NY income taxes, according to attorneys Allan Lipman and Kelly Zarcone, who are licensed to practice in both states. In 2014, Easter was April 20th. The first Passover seder was the evening of April 14th. This year Easter was April 5th and the seder was on April 3rd.  Many retirees follow the same pattern each year.  They remain in Florida until shortly before the holiday and then fly to their home in NY. They remain there until mid October. Some no longer bother counting the days. Even though domiciled in Florida where there is no state income tax, a retiree that maintains a home or condo in NY and is present in NY for more than 183 days is treated as a New Yorker for income tax purposes during that entire calendar year. They may be surprised to receive a notice from NY that they must prove that they were not in NY more than 183 days. If they cannot do so, they must pay the resident income tax on all interest, dividends, capital gains and IRA distributions. The auditor will exam your credit cards, checks, EZ pass and other records and may request information concerning your claimed status as a Floridian including the relative size and value of your two homes. If you cannot demonstrate that you effectively changed your domicile to Florida, you will be assessed back taxes even though you satisfy the 183 day test. The attorneys point out that a partial day counts as a full 24 hour day. What if you delay your return to Florida in the Fall because of sickness, or a threatening hurricane, or you return to NY because of an unexpected funeral? Those extra days in NY count against you unless you are hospitalized. Keep good records. It is often difficult to reconstruct several years later. It may be impossible to prove, if raised in connection with an estate/income tax audit after your death.

For more information, www.snowbirdguide.com.

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SOURCE Brenon, Lipman & Zarcone LLP