Freelance work for out of state clients

[Kallhi]

Hi,

I have a question regarding allocation of state taxes, for quarterly estimates.

 I’m a resident of California with freelance clients in NY, with my work Being produced in California(desktop/digital work). Aside  from owing California state tax, do I also owe NY state taxes as a non resident since it’s ”NY source income”? I don’t see why since it’s produced in California and since it seems to make having multiple multi-state clients administratively clunky.

Would appreciate any insight on this. 

Thanks

KJ

[TomD8 · Accepted solution]

New York Tax Law 631(B)(1)(B) states that New York-source income includes income attributable to "a business, trade, profession or occupation carried on in this state."

Since you don't work for a New York employer, and your work was not carried on in New York, the income from that work is not New York-sourced, and therefore it is not subject to NY taxation.

https://casetext.com/statute/consolidated-laws-of-new-york/chapter-tax/article-22-personal-income-ta...

[Kallhi]

Thanks, Tom!

Makes sense with what I originally thought, But the wording can get a bit tricky so had to double-check.

Appreciate it!

KJ