Could I Use a Virtual P.O Box for Tax Withholdings?

theboxx — Fri, 24 Jan 2025 02:28:20 GMT

I just started a new job in San Francisco, California. I plan on working in SF about 10-20% of the time, and the rest from NYC. This is purely for my convenience, not the company's convenience.

Since I visit SF only a portion of the time, I decided not to get permanent housing.

The company has asked me for a California address for tax withholdings. Could I use a San Francisco virtual P.O. box address for the withholdings?

I also understand that NYC will want city taxes when I file in 2026. How do I handle all this? Will I be double-taxed? Will I need a CPA in 2026 to handle this tax complexity or is it still doable by myself?

Re: Could I Use a Virtual P.O Box for Tax Withholdings?

TomD8 — Fri, 24 Jan 2025 16:30:42 GMT

As a New York resident, all your income is taxable by New York, regardless of where you earn it.

Unlike New York, California does not have a "convenience of the employer rule." California taxes non-resident employees only on income earned from work physically performed within CA. Your employer should withhold CA taxes only on that portion of your income. See page 19 of this CA tax publication:

https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de44.pdf

CA does not require that a non-resident have a CA address in order to have CA taxes withheld. In fact, California Form DE 9C, the form on which the employer reports withheld taxes to the state, does not even require an employee address.

https://www.dir.ca.gov/dlse/regulation_detail/de9c.pdf

The address on your year-end W-2 should be the address to which you want it to be mailed. There is no rule that says that that address cannot be a PO Box. Your state tax obligations are not determined by the mailing address on your W-2.

Your situation is common and can be handled by the TT program.

topic Could I Use a Virtual P.O Box for Tax Withholdings? in State tax filing

Could I Use a Virtual P.O Box for Tax Withholdings?

Re: Could I Use a Virtual P.O Box for Tax Withholdings?