@PANYtax Based on the facts provided you don't owe taxes to New York State (assuming all of your wage income is related to the current year, or if in prior years the facts are the same). Your physical presence in the State is not sufficient. You have to be performing services both within and without the State for 132.18(a) to apply. I'd gather any documentation you have to support it was a personal day (easier if it was a weekend). Things such as any documentation showing you took PTO on that day with your employer, the reason you were in New York and supporting proof (credit card charges, contemporaneous email/texts, invitation, medical records, etc.).
On your return, TurboTax will likely want you to include a form IT-203-B. Review the NYS return before submitting, lines 1h and 1i should be identical and line 1n should be zero percent. The IT-203-B may force 1l to be all the days you worked at home, making 1n a high percentage, contact TurboTax for a fix to this. A better scenario is to not include IT-203-B at all, if the software has no ability to address your particular circumstances. Absolutely do not report 1 working day in NY as a work around on this form to trigger the allocation ratio at 1n. You won't be able to dig yourself out of that hole on an audit for misrepresenting that day. It may be worth the money to have an accountant prepare your return who can include an attached statement, and paper file your return if necessary to make a manual correction to that form.
Again should you be audited (1) prove your presence was not work related, (2) cite NYCRR 132.18(a), (3) cite NYS 2013 Nonresident Allocation Guidelines page 19, and (4) cite NYS Supreme Court Case Matter of Arthur Hull Hayes, 61 AD2d 62 in your response of why you don't owe taxes. If they ask why your employer withheld taxes, you can say that NY's withholding tax laws/guidelines for employers is not the same as NY's personal income tax laws.
If you feel there is some other nuanced fact here that needs to be disclosed, please just Google my name and call me. Good luck with everything.
Kristine L. Bly, EA Private Client Services / Residency / Tax Controversy
Partner, Cohen & Company
