Hi! Would greatly appreciate any tax guidance on the below situation for 2020 as it relates to remote work for a NYC based job:
I started out the year as a resident in New York City but left late March due to the pandemic. I went to KY, where I have a permanent home, and stayed there until August, when I went back to NYC to get out of my lease and move out of my apartment. I moved to NJ in September and stayed there for three months, after which I went back to KY (so did not stay in any of these 3 places more than 183 days each).
After the pandemic started in March, I worked remotely all year. I work in consulting, and per our company guidelines, they insist we log all time based on our physical location where the work was performed. Because of this, I have withholding for taxes for the time I worked in KY/NJ from home (and any time we travel to a different state for work, the income while we are in that state is counted as source income from that state for which we need to file a non-resident state return).
However, it seems that all the time worked remotely (while my job is still based out of the NYC office) should be included in the % that counts towards NYS taxes. In this case, would it be fair to say I have been double taxed on the remote work income (the sum of my state wages – box 16 – across all of my states is ~60k more than my wages – box 1 – so it definitely seems like it)? And how would I claim credit for the additional tax paid?
Per my understanding, I would file as part year resident for NYS and part year resident for KY and non-resident for NJ. So in my NYS return, would I claim the credit for the tax paid to KY and to NJ? Or would I need to do something different?
Any advice would be greatly appreciated.
