I live in CA and working remotely in New York city. So my work state is New York and resident state is California. Will I be taxed by both the states?

[aj1231]

If I pay the taxes for both New York and California states, will I get the credit back from the state of New York when I file my return?

[TomD8]

Your home state of CA can tax ALL your income, regardless of where you earn it.  Your non-resident state of NY can tax your earnings from work you perform in an NY location, including remote work.

So you will file a non-resident NY tax return in addition to your resident home state CA return.

You'll be able to take a credit on your CA return for the taxes paid to NY on the portion of your income that is taxed by both states.  So you won't be double-taxed.

When you do your returns in TurboTax, be sure to complete the non-resident NY return first, before you do your CA return, so that the program can apply the credit correctly.

Note: If you maintain a permanent place of abode for "substantially all" of the tax year, and you spend 184 days or more in NY during the taxable year, you'll have to file your NY return as a resident.  This is more fully explained in this reference:  https://www.tax.ny.gov/pit/file/pit_definitions.htm

[aj1231]

@TomD8 Thanks for a quick response. Good to know that I will not be double taxed, but when I talked to Turbo Tax agent yesterday, I was told that I will be double taxed. Hence I wanted to confirm. I am not sure if he meant that I will be double taxed and then I have to take a credit when I file my return. 

Is there any calculator which takes into account resident and work state and calculate the taxes?

[TomD8]

@aj1231 -- Technically the income you earn in NY will be taxed by both states, but the CA portion of the tax will be partially or totally offset by the credit you can take for the tax paid to NY.