I am a full-time resident of Virginia. During 2023, I performed consulting work for a New York-based company (which also has some limited operations in Virginia). I never stepped foot in New York to perform any of this work.
Question 1: I find the New York rules about "New York sourced income" confusing. Since I was never physically in New York (not even for even a day), do I need to report this as "New York Sourced income" by submitting a non-resident New York tax form, or can I just include it on my Virginia tax return?
An earlier response to a similar question on this Forum stated the following:
If you as a non-resident of NY never actually (physically) worked within New York State, not even for a single day, then your income from that work is not taxable by New York State. As @MayaD stated, NY-source income includes earnings from work performed in New York State, and income from real property located in the state.
This suggests that I do not need to declare this income as New York-sourced income, nor do I need to file a non-resident New York tax return. I would like to confirm this.
Question 2: TurboTax (downloaded version) does not appear to change tax allocations between between Virginia and New York regardless of my entries (I was running different scenarios). It continues to show the allocations made in my initial entry (on the "Let's Review Your New York Numbers" page). Is this a program glitch?
Thank you!
