@ParkNYC wrote:
@Opus 17
My wife lives and works remotely in NJ, we've been asking her company to stop withdrawing NYS taxes because we live and work in NJ , they refused. They said the company has an office in NYC and that office address is on her contract. She never went to that office and we also filed IT-2104.1 form. They still charge her NY tax. I guess it doesn't matter for NYS tax department where you live, as long as you work for a company with a NYC office they'll charge you NY taxes and force you to file a nonresident IT-203 form.
That's not the NY tax department, that's on the employer for refusing to follow your wife's instructions. They may be under pressure to withhold from out of state employees, but it is ultimately up to the company to fight or fold.
As long as your wife does not work even one day in New York (such as for a mandatory training session, or mandatory meeting once a month, or something like that) she is not subject to NYS tax, and if the company won't honor her request, then she just has to keep filing the non-resident return to get a refund. She should also be making estimated payments to New Jersey, which is unfortunately going to take a temporary bite out of your finances until you get that NYS refund. Of course, if she does work even one day physically in NYS, she is subject to NYS tax on her full year of income.
