topic Taxes for remote employee in State tax filing

Taxes for remote employee

lbel86 — Sat, 05 Sep 2020 01:37:12 GMT

Hello,

I live in Washington state and am considering a job offer from a company in NY. I have a few tax-related questions:

1) Would I be subject to NY state income taxes as a fully remote employee? I’m assuming yes.

2) I know I would have to file a nonresident form for NY state. Does this benefit me in any way, tax-wise?

3) The company I would be working for is in Manhattan. Would I also be subject to the NYC income tax?

Thanks in advance for your help!

Re: Taxes for remote employee

Hal_Al — Sun, 06 Sep 2020 11:17:24 GMT

Q,1) Would I be subject to NY state income taxes as a fully remote employee?

A. 1) Yes, most likely, NY (or NJ, DE, PA or NE) tax telecommuters, depending on how your situation meshes with the "convenience of the employer" rule. For a fuller explanation, see https://ttlc.intuit.com/community/state-taxes/discussion/re-your-employer-has-reported-this-correctly-new-york-has/01/1453394/highlight/true

Q. 2) I know I would have to file a nonresident form for NY state. Does this benefit me in any way, tax-wise?

A. 2) Yes. Your NY employer will, almost certainly, withhold NY tax. So, you may get some of it refunded. But "benefit" in irrelevant. You are required to file a state return.

Q. 3) The company I would be working for is in Manhattan. Would I also be subject to the NYC income tax?

A. 3) No. See https://www1.nyc.gov/site/finance/taxes/personal-income-tax-and-non-resident-employees.page#:~:text=New%20York%20City%20residents%20must,Department%20of%20Taxation%20and%20Finance.&text=Most%20New%20York%20City%20employees,must%20file%20Form%20NYC%2D1127.

Re: Taxes for remote employee

TomD8 — Sat, 05 Sep 2020 13:59:16 GMT

If you are required by your employer to perform your work wholly outside New York, your income is not taxable by New York. See page 7 of this web reference:

https://www.hodgsonruss.com/media/publication/915_Nonresident%20Allocation%20Guidelines%202013.pdf

This is known as the "convenience of the employer" doctrine.