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I live in NYS and telecommute to a client in CT through a consulting company in PA. Do I need to file state tax forms in NYS, PA and CT?
I live in NYS and consult for a client in CT through the consulting company in PA. I telecommute 80% of the time from my home in NYS to the client's office in CT. I never do work for the company in PA, only for their client. For several years I've filed NYS taxes, should I have been filing PA and CT taxes as well?
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State tax filing
Yes to NY. You are a NY resident and NY taxes all of your income no matter where it is earned. If you earn income in another state, you will receive a credit for the income tax you pay on that same income to the other state.
No to PA. Although the company's main office is in PA, your work is not associated with Pennsylvania, but with the Connecticut client. If you were physically going to Connecticut, the income would not be taxable to PA unless you lived there.
No to CT. If you were physically travelling to Connecticut, you would file a nonresident return for Connecticut income. However, telecommuting is not considered by Connecticut as taxable, based on this website: http://www.ct.gov/drs/cwp/view.asp?a=1479&q=277548. It says in part:
Wages of a nonresident are subject to Connecticut income tax withholding if the wages are paid for services rendered in Connecticut. Wages of a nonresident are not subject to Connecticut income tax withholding if the wages are paid for services performed entirely outside of Connecticut. (Italics added)
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State tax filing
Thanks for the insight!
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State tax filing
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