@Ericaandchris2023 --
If you as a non-resident of NY never physically work within New York State, then your income is not New York-sourced and is not taxable by New York. You should file NY Form 2104.1 with your NY employer ASAP in order to get them to cease withholding NY taxes. Here's a link to that form:
https://www.tax.ny.gov/pdf/current_forms/it/it2104_1_fill_in.pdf
Unfortunately, since NY taxes were incorrectly withheld from your pay you'll have to file a non-resident NY tax return. On that tax return you should show the NY withholding but allocate zero income to NY. This should result in your receiving a full refund.
From the NY Employers Withholding Guide:
"New York State personal income tax must be deducted and withheld on wages paid to New York State nonresident employees for services performed in New York State." (page 44)
"If a New York State nonresident employee performs services partly in the state, only wages for services inside the state are subject to withholding of New York State personal income tax." (page 45)
https://www.tax.ny.gov/pdf/publications/withholding/nys50_1223.pdf
FYI, this issue was decided in tax court years ago:
"Per Hayes v. State Tax Commissioner, 401 N.Y.S. 2d 876, “A nonresident who works in another State but who performs no work in New York is not subject to New York State tax liability no matter for whose convenience or necessity he performs the work.”
Hayes v. State Tax Comm, 61 A.D.2d 62 | Casetext Search + Citator
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
