topic Is work done for a Washington company in New York considered New York source income? in State tax filing

Is work done for a Washington company in New York considered New York source income?

zhengkaw — Tue, 15 Sep 2020 06:36:31 GMT

Hi, I currently work for a Washington state company that allows remote work during covid and I am interested in living in New York. From what I gather I can stay a non resident if I stay there less than 183 days during a tax year.

I see that even a non resident have to pay taxes for "New York source" income. https://www.tax.ny.gov/pit/file/nonresidents.htm My question is, would my salary from the Washington company that I work for be considered "New York source" because I was living in New York as I was doing it?

According to https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/pit/ny_source_income_nonresident.htm, New York source income includes services performed in NY and occupation carried on in NY. So wanted to make sure.

Re: Is work done for a Washington company in New York considered New York source income?

TomD8 — Tue, 15 Sep 2020 13:12:21 GMT

Work income is "sourced" where the work is actually (physically) performed. So money you earn by working in New York State, including remote work done in NY for an out-of-state employer, is NY-source income, and is subject to taxation by NY state.

Re: Is work done for a Washington company in New York considered New York source income?

Opus 17 — Tue, 15 Sep 2020 15:16:16 GMT

If you live in NY and work in NY, then your income is NY source, even if the payer is out of state. Depending on whether you are temporarily visiting or permanently move to NY, you will owe NY either a non-resident return on your income earned while in NY, or you will owe a resident return on all your annual income from all sources.

Be careful about "I am interested in living in New York." Your domicile is where you live for tax purposes. Your domicile is your permanent home, it is where you have significant family, social, financial and legal ties; such as your doctor, dentist, church, bowling league, voter registration, and so on. There is no single factor that determines domicile, it is based on the combination of all factors. If you change your domicile to New York, then you are a NY resident for income tax purposes, even if you are physically in New York state less than 183 days of the year.