I realize I will probably need to hire a tax pro to help, but in this situation - self-employed and reside in GA but all income is earned remotely from NY - how do I file taxes? What is done first, next, etc.
Also, how does it work as far as paying my quarterly esrtimated state taxes? Will I still send a quarterly estimated tax payment to NY?
Thanks for any guidance.
A non-resident of New York who actually (physically) performs no work within New York State, not even for a single day, has no tax obligation to the State of New York for the income from that work.
On the other hand, your income is fully taxable by your resident state of Georgia. If no federal or state taxes are being withheld by your 1099 payers, then you must make quarterly estimated tax payments to both the IRS and the State of Georgia.
@Valemart wrote:
That's interesting to hear. I would owe nothing to NYS? Even if as I said, my business is in NY, and all my earnings via my clients are coming from NY? Yes, I work remotely from Georgia but 100% of my income is generated from NYS. You seem to be saying if I am physically in Georgia than NYS becomes irrelavant even if my business address and all business is carried out there remotely.
Correct.
If you work for a New York employer (as a W-2 employee), and work remotely for your own convenience (not the employer's convenience), then you can sometimes owe NYS tax on your income. However, this does not apply to self-employed/independent contractors, and even if it did, it does not apply if you never set foot in New York State during the tax year. As an independent contractor, if you did perform some work while visiting NY, that portion of your income would be taxable non-resident income.
For what it's worth, California taxes independent contractors based on where their clients are located, so if you had clients in California, you would owe non-resident income tax on that portion of your income. But New York does not. As long as you did not physically perform work while living in or visiting NY, you only owe Georgia tax.
A non-resident of New York who actually (physically) performs no work within New York State, not even for a single day, has no tax obligation to the State of New York for the income from that work.
On the other hand, your income is fully taxable by your resident state of Georgia. If no federal or state taxes are being withheld by your 1099 payers, then you must make quarterly estimated tax payments to both the IRS and the State of Georgia.
That's interesting to hear. I would owe nothing to NYS? Even if as I said, my business is in NY, and all my earnings via my clients are coming from NY? Yes, I work remotely from Georgia but 100% of my income is generated from NYS. You seem to be saying if I am physically in Georgia than NYS becomes irrelavant even if my business address and all business is carried out there remotely.
Thanks for the response, btw.
Nick
“A nonresident who works in another State but who performs no work in New York is not subject to New York State tax liability no matter for whose convenience or necessity he performs the work.” Hayes v. State Tax Comm, 61 A.D.2d 62, 64 (N.Y. App. Div. 1978)
@Valemart wrote:
That's interesting to hear. I would owe nothing to NYS? Even if as I said, my business is in NY, and all my earnings via my clients are coming from NY? Yes, I work remotely from Georgia but 100% of my income is generated from NYS. You seem to be saying if I am physically in Georgia than NYS becomes irrelavant even if my business address and all business is carried out there remotely.
Correct.
If you work for a New York employer (as a W-2 employee), and work remotely for your own convenience (not the employer's convenience), then you can sometimes owe NYS tax on your income. However, this does not apply to self-employed/independent contractors, and even if it did, it does not apply if you never set foot in New York State during the tax year. As an independent contractor, if you did perform some work while visiting NY, that portion of your income would be taxable non-resident income.
For what it's worth, California taxes independent contractors based on where their clients are located, so if you had clients in California, you would owe non-resident income tax on that portion of your income. But New York does not. As long as you did not physically perform work while living in or visiting NY, you only owe Georgia tax.