Your daughter would have to file a resident New York return and a nonresident New Jersey return because she had state income tax withheld for New Jersey. In order to get a refund of the New Jersey state income paid, she needs to file a return.
Generally, New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed. However, during the temporary period of the COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction. Since you stated your daughter has never been to New Jersey for work, it does not seem like she is telecommuting due to Covid-19. In that case, it would be New York sourced income.
Telecommuter COVID-19 Employer and Employee FAQ
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
