Living in PA as a remote employee for NY state company

Forum|Forum|4 years ago
January 6, 2022
5 replies
11 views

In January 2021, I was hired to work for a multi branch company they have an office in PA and other states, their main office is in NY but due to the pandemic I have been working remotely and in June 2021 I moved over two hours away from the PA office. I was just informed that if I do not plan on going into the office at least 1 a month they will need to change my tax withholding to NY. Since I do not plan on traveling over 2 hours to go into the office once a month, here is my questions.

1. Once my tax withholding is changed to NY for the year 2022 would I have both PA and NY tax withholding show on my pay, or will it just be NY?
2. At the end of 2022 will I need to file a tax return in NY or just PA?

I am sure I will probably have more questions, but this is where I need to start.

Not A Product Question

Vanessa A

Level 15

You will file a New York State Non Resident return and a PA Resident return. On your PA resident return you will claim a credit for taxes paid to NY.

You will only have withholdings for NY. You may or may not end up owing PA when you file depending on the rest of your tax situation.

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chicdsvAuthor

Level 2

@Vanessa A this may be a dumb question but when I file the PA return is the New York non resident returned filed together or will those be two separate filings?

How would this work if I am married filing jointly (husband works in PA and company is in PA)? Also the last part about having to owe PA depending on my tax situation is there a way to prepare for that ahead of time. Like designate extra Federal withholding to be taken out of every pay?

Vanessa A

Level 15

They PA and NY returns are separate returns. When you answer the Personal Info section questions, one question will ask if you worked or earned income in any other state. Just answer yes to that question. Then when you get to the state section TurboTax will walk you through the New York and then PA returns. You want to do your Non-Resident return before the resident return so you can get the credit for taxes paid.

No, you cannot have extra withholdings for PA. PA is pretty cut and dry. The tax rate is 3.07%. Generally, NY state tax rate is higher than PA's so chances are you won't owe anything on the income earned from NY to PA because of the credit.

If you file a federal joint return with your husband, you would generally file the joint returns for the states. If you file separate, you would file separate for the states. However, since you are both non-residents of New York and only you have NY source income, you do have the option to file a joint Federal Return and a separate NY return.

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