N.Y. Yonkers income tax surcharge § 15-126: Change of residency status

§ 15-126. Change of residency status.

A. General. If an individual changes his/her status during his/her

taxable year from resident to nonresident, or from nonresident to

resident, he/she shall file a return as a nonresident for the portion of

the year during which he/she is a nonresident if he/she is subject to

the tax imposed by this article or, if not subject to such tax, an

information return for the portion of the year during which he/she is a

nonresident, subject to such exceptions as the State Tax Commission may

prescribe by regulation. Such information return shall be due at the

same time as the return required by Article IX of this chapter for the

portion of the year during which such individual is a resident.

B. City of Yonkers taxable wages and net earnings from self-employment

for portion of year individual is a nonresident. The City of Yonkers

taxable wages and net earnings from self-employment for the portion of

the year during which the taxpayer is a nonresident shall be determined,

except as provided in Subsection C, under this article as if his/her

taxable year for federal income tax purposes were limited to the period

of his/her nonresident status.

C. Special accruals.

(1) If an individual changes his/her status from resident to

nonresident, he/she shall, regardless of his/her method of accounting,

accrue for the portion of the taxable year prior to such change of

status any items of income, gain, loss or deduction accruing prior to

the change of status, if not otherwise properly includable (whether or

not because of an election to report on an installment basis) or

allowable for City of Yonkers earnings tax purposes for such portion of

the taxable year or a prior taxable year. The amounts of such accrued

items shall be determined as such accrued items were includable or

allowable for federal self-employment tax purposes.

(2) If an individual changes his/her status from nonresident to

resident, he/she shall, regardless of his method of accounting, accrue

for the portion of the taxable year prior to such change of status any

items of income, gain, loss or deduction accruing prior to the change of

status, if not otherwise properly includable (whether or not because of

such an election to report on an installment basis) or allowable for

federal self-employment tax purposes for such portion of the taxable

year or a prior taxable year. The amounts of such accrued items shall be

determined as if such accrued items were includable or allowable for

federal self-employment tax purposes.

(3) No item of income, gain, loss or deduction which is accrued under

this subsection shall be taken into account in determining city-adjusted

wages earned or net earnings from self-employment within the City of

Yonkers for any subsequent taxable period.

(4) Where an individual changes his/her status from resident to

nonresident, the accruals under this subsection shall not be required if

the individual files with the State Tax Commission a bond or other

security acceptable to the Commission, conditioned upon the inclusion of

amounts accruable under this subsection in the determination of the City

of Yonkers income tax surcharge under this Article X hereof for one (1)

or more subsequent taxable years as if the individual had not changed

his/her resident status. In such event, the tax under this article shall

not apply to such amounts.

D. Prorations. Where an individual changes his/her status during

his/her taxable year from resident to nonresident or from nonresident to

resident, the exclusion allowable under § 15-116B shall be prorated,

under regulations of the State Tax Commission, to reflect the portions

of the entire taxable year during which the individual was a resident

and a nonresident.