TomD8
Level 15

State tax filing

@BR8 --

 

Unfortunately your situation is not the same because of the states involved.  If you move during the tax year, you will file a part-year resident return in each of the two states.  However, New York is one of a handful of states that tax non-resident remote workers according to the "convenience of the employer" doctrine.  Simply put, if you continue to work remotely for your New York employer after your move, your income will continue to be taxable by NY (as well as by your new resident state of NC) unless you are working remotely at your employer's direction - as opposed to your own convenience.

https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

 

California, in contrast, does not tax non-resident remote employees who work from a location outside CA.

 

If your remote income is taxable by both states, you'll be able to claim a credit on your NC tax return for the taxes paid to NY on that portion of your income.  This avoids double taxation.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.