topic New York Intern - Out of State Resident in State tax filing

New York Intern - Out of State Resident

zmouse24 — Fri, 14 Jun 2024 16:59:39 GMT

Hi,

I am currently a student thinking of accepting a New York City internship for 13 weeks this summer and I was wondering how I should be taxed? If I were to accept, I want to know what my liability to the state of New York would be.

At that point I will be a resident of California. Should my employer still withhold taxes for my home state during my internship? Should I allocate only the percent of time I'm working in New York on the IT-2104.1 tax form? I would be living in NYC, should I be liable for local city tax?

Thank you.

Re: New York Intern - Out of State Resident

NCperson — Fri, 14 Jun 2024 19:00:49 GMT

@zmouse24 you would be liable for NY and NYC tax on your income. So you would complete NY State income tax and THEN complete CA income tax form. CA will give you credit for what you paid NY and NYC.

Best to just have your employer withhold NY and NYC taxes as what you MIGHT owe CA could be quite small.

You owe tax where you work AND where you live - but where you live will give you a credit for taxes paid where you work if those are two different states.

Re: New York Intern - Out of State Resident

TomD8 — Sat, 15 Jun 2024 13:33:28 GMT

@zmouse24 --

If you will live in NYC fewer than 184 days, then for tax purposes you will be considered a non-resident of NYC, and you will NOT be liable for the NYC income tax. The NYC income tax is imposed on New York City residents only.

Frequently Asked Questions about Filing Requirements, Residency, and Telecommuting for New York State Personal Income Tax (ny.gov)

However, any income you earn by physically working within New York State will be taxable by New York State.

So you should have your New York employer withhold tax for New York state, but not for New York city.

All your income - including that from NY - will be taxable by your resident state of California; but as @NCperson said, you'll be able to claim a credit on your CA return for the tax you pay to NY, which in effect will prevent double taxation of that income.