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I live in MA and wife got a remote job in New York, how do we file tax return

Hi,

 

So both of us live in MA as resident. My company is in MA, and wife got a remote job for a company in NY since June 15. How do we file tax return in this case?

 

Federal file jointly

MA state return file jointly

NY state return file separately for my wife alone?

 

Can turbo tax handle this situation?

 

 

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1 Best answer

Accepted Solutions

I live in MA and wife got a remote job in New York, how do we file tax return

File jointly doing federal first, non resident NY return second and resident return MA last. MA will give you credit for any NY tax liability. 

View solution in original post

7 Replies

I live in MA and wife got a remote job in New York, how do we file tax return

File jointly doing federal first, non resident NY return second and resident return MA last. MA will give you credit for any NY tax liability. 

I live in MA and wife got a remote job in New York, how do we file tax return

NY return for my wife alone, right?

I live in MA and wife got a remote job in New York, how do we file tax return

No. You are filing all returns jointly. When completing the NY return you will be able to report what income was earned in NY. 

I live in MA and wife got a remote job in New York, how do we file tax return

I see. Thanks!

Hal_Al
Level 15

I live in MA and wife got a remote job in New York, how do we file tax return

She may not have to pay NY income tax, at all.

 

 If you work outside NY as a job requirement, you are only subject to New York State income tax on the days you work in New York. But if you work outside New York for your own convenience, you are subject to New York State income tax on all your income. Pennsylvania, Nebraska, Delaware and Arkansas have the same rule.  Here's a link to New York's memorandum on its "convenience of the employer" tax doctrine regarding non-resident telecommuters: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

 

 But, if 100% of your work time is in MA (not even 1 day in NY),   you may not be subject to any NY tax*.

 

But the bottom line may be whether your employer withholds NY state tax. If they do, you may have a hard time getting a refund from the NY Dept. of Taxation and Finance. Due to NY's higher tax rates, you are unlikely to get a full credit, on the MA return, for tax paid to NY.

 

*Reference: https://ttlc.intuit.com/community/state-taxes/discussion/i-work-for-a-ny-company-remotely-from-nc-i-...

 

 

rjs
Level 15
Level 15

I live in MA and wife got a remote job in New York, how do we file tax return

The Hayes decision was in 1978. There were no telecommuters in 1978. Hayes was not telecommuting. Also, Hayes's situation was very unusual, and involved a written quid pro quo agreement with the employer. I would be very hesitant to try to apply a 44-year old court decision to a present-day situation with a very different set of facts, especially since the decision is not reflected in the 2006 Department of Taxation and Finance document TSB-M-06(5)I. There could have been subsequent legislation or legal action over the last 44 years that changes the rules. Before you rely on the Hayes decision you should get expert legal advice.

 

TomD8
Level 15

I live in MA and wife got a remote job in New York, how do we file tax return

For those who might be interested, this 2021 web article has an excellent breakdown of New York's "convenience of the employer" doctrine regarding non-resident remote workers:

https://www.hodgsonruss.com/assets/htmldocuments/New%20Yorks%20Convenience%20Rule.pdf

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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