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Suppose I am living in an Airbnb in NYC for a year but my permanent address is listed as being in another state. In TurboTax, is it okay to submit a change of address form since the federal tax return still lists the other state as my permanent address?

Note that when I fill out the taxes for the permanent address in the other state, I have to pay a lot. When I fill it out for the address in NYC instead, I don't have to pay anything.

Note: the other state is Pennsylvania.

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    Where is your residency? Somehow "NYC saves me in taxes" doesn't sound right to me, it is usually the other way around. But in the unlikely event that you find it more beneficial for tax purposes to be NYC resident than somewhere else - you still need to show to that "somewhere else" that you are in fact a resident in NYC. AirBNB would generally not be considered a residence just as a hotel would not.
    – littleadv
    Commented Apr 12, 2023 at 16:53
  • @littleadv: Does living in an airbnb in manhattan for 1 year count as being a permanent resident in NY?
    – RefundGuy122
    Commented Apr 12, 2023 at 17:41
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    The question is not what counts as being resident in NY, but what counts as being non-resident in the previous place. You can very well be considered resident in both States by their respective laws.
    – littleadv
    Commented Apr 12, 2023 at 17:42
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    Figure out what are the residency laws in the previous state.
    – littleadv
    Commented Apr 12, 2023 at 17:43
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    Re tax amounts: If you reside in NYC, you are liable for both NY state and NYC taxes. I would be surprised if this total adds up to less than your other state; NY State by itself has one of the highest state income tax rates I know of.
    – keshlam
    Commented Apr 12, 2023 at 19:13

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To answer the question narrowly - the address on your tax return is for mailing purposes/contact. It is where you want the letters to be sent to. It has nothing to do with the taxes you owe.

As discussed in the comments, what you're actually interested in is the determination of residency in your previous State, and whether living in an airbnb in New York counts as becoming a non-resident in that State. Since you've said nothing about what State that is - it is not something that we can guess. You'll need to check with the local taxing agency.

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  • Note that if you spent part of a year resident in one state and part in another state, you may have to file returns for BOTH states. Usually there is a mechanism in each state's taxes for pro-rating the income between the two, but the details may vary. Last time I relocated was the one time I had a pro deal with my taxes, to make sure this was handled correctly. (It helped that this was one of the benefits that came with my relocation, admittedly.)
    – keshlam
    Commented Apr 12, 2023 at 19:04
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    I'd be shocked if an AIRBnB counted as residence, especially if you retain a residence elsewhere and haven't moved a significant percentage of your possessions. You need to ask an expert, not the web -- especially since an expert will guarantee that the advice is valid and take responsibliity for getting you out of trouble if it isn't.
    – keshlam
    Commented Apr 12, 2023 at 19:10
  • @littleadv: The previous state is Pennsylvania.
    – RefundGuy122
    Commented Apr 12, 2023 at 21:15
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    @RefundGuy122 see here: revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/…
    – littleadv
    Commented Apr 12, 2023 at 22:41
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Suppose I am living in an Airbnb in NYC for a year but my permanent address is listed as being in another state. In TurboTax, is it okay to submit a change of address form since the federal tax return still lists the other state as my permanent address?

Turbo tax doesn't care where you want your mail sent. Somebody could move in early 2023 so they want any correspondence sent to their new place, but would have zero impact on your 2022 taxes.

The numbers on your Federal return only depend indirectly on where you are living.

The indirect part is because where you live and work determines your state and local taxes, which if you itemize can make a difference. Normally your return reflects what happened last year but being a resident of a state may impact your ability to claim a deduction or credit at the state level. But this would be an edge case if the impact was reflected in the return you are filing in April 2023.

Note that when I fill out the taxes for the permanent address in the other state, I have to pay a lot. When I fill it out for the address in NYC instead, I don't have to pay anything.

Note: the other state is Pennsylvania.

New York is very aggressive in claiming income. If you were working in New York, they will want their money.

If you were living in New York, they will want your money.

You will have to determine when or if Pennsylvania ever considered you a resident of New York. Or if they think of you as a resident of PA, who is temporarily in New York.

If you had tax withholding for Pennsylvania, you will have to file a state tax return with them to get some or all of it back. If the withholding was for NY, then you may still have to file a return with PA, if they consider you an resident at amy point in 2022.

Expect to have to file 2 state and 1 federal return.

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