Amending a NYS individual return

[ttbtaxes]

Client was a member of the military and filed a 2014 NYS resident tax return (under extension) because it was the state of his domicile when he entered the military. He meets all three criteria to file as a nonresident of NYS for that year and exclude his W-2 income from NYS taxation.

I am not sure whether to file an amended 2014 resident return showing zeros AND file a non-resident original return for 2014 or to file an amended nonresident return showing what income is allocated to NYS.

I called NYS Tax Dep't and they said to file an amended non-resident return but that just seems odd to me when an original non-resident return has never been filed.

Any thoughts?

[Uncle Sam]

This might be what you're looking for

https://tax.ny.gov/pdf/publications/income/pub361.pdf

[New York Enrolled Agent]

FE - page 5 of the pub Sam provided contains:

If your domicile was New York State when you entered the military but you were later assigned to another state or country, your domicile does not change. Accordingly, you generally will remain a New York resident for income tax purposes. However, if you meet all three of the conditions in either Group A or Group B (below) you are considered a nonresident for the tax year:

Group A

1. You did not maintain any permanent place of abode in New York State during the tax year; and

2. you maintained a permanent place of abode outside New York State during the entire tax year; and

3. you spent 30 days or less (any part of a day is a day for this purpose) in New York State during the tax year.

[ttbtaxes]

Yes, there is also a specific definition of what constitutes a permanent place of abode. I've gone through the analysis and he clearly is a nonresident for NYS tax purposes.

The issue for me was how to amend his return when he filed a resident return paying tax and should have filed a nonresident return and not be liable for any tax. My best guess was to file an amended resident return and have all NYS taxes refunded then file a nonresident return showing zeros.

My guess was wrong. He needs to file an amended nonresident return even though he never filed a nonresident return to begin with. Strange but that's what NYS wants.