topic State Taxes in State tax filing

State Taxes

raschdog — Fri, 26 Mar 2021 01:39:55 GMT

Company was located in NYC. Worked remotely at residence in Delaware.

What state/city forms need to be filed? Taxes deducted for NYC and NYS.

Re: State Taxes

BillM223 — Fri, 26 Mar 2021 02:36:27 GMT

New York State taxes telecommuters, UNLESS you are working in Delaware because your employer wants you to ("for the employer's convenience"). Usually this is not the case - you are working in Delaware because that's where you lived at the time you got the job and you stayed there.

If so, then you file a nonresident return in New York and a resident return in Delaware.

Do the New York data entry first, then the Delaware. New York City taxes will be calculated in the New York State return.

TurboTax will calculate the total New York taxes (State and City), and apply the NY withholdings to it.

Then the New York tax will be brought back to Delaware as a tax credit on line 10 on the Delaware form 200-01.

Re: State Taxes

raschdog — Fri, 26 Mar 2021 11:27:12 GMT

Thank you. In this case the NYC office was shut down in March and all employees were working remotely. The lease was not renewed in July. The company started in January, all staff went to Columbia, South America, just before the pandemic hit for a team building session for a couple of weeks. They ended up in lockdown until their return to the US in May (so they were out of the country for 3 months). Everyone worked remotely for the convenience of the company. The company stayed intact until January 2021 and has since been disolved.

Re: State Taxes

LenaH — Mon, 29 Mar 2021 18:49:32 GMT

No. When telecommuting was due to Covid-19, you still owe New York State Tax.

As stated by New York State in the FAQ's section - Frequently Asked Questions about Filing Requirements, Residency, and Telecommuting for New York State Personal Income Tax,

If you are a nonresident whose primary office is in New York State, your days telecommuting during the pandemic are considered days worked in the state unless your employer has established a bona fide employer office at your telecommuting location. There are a number of factors that determine whether your employer has established a bona fide employer office at your telecommuting location. In general, unless your employer specifically acted to establish a bona fide employer office at your telecommuting location, you will continue to owe New York State income tax on income earned while telecommuting.

@raschdog