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Consultant-Q
New Member

I live in NYS and telecommute to a client in CT through a consulting company in PA. Do I need to file state tax forms in NYS, PA and CT?

I live in NYS and consult for a client in CT through the consulting company in PA. I telecommute 80% of the time from my home in NYS to the client's office in CT. I never do work for the company in PA, only for their client. For several years I've filed NYS taxes, should I have been filing PA and CT taxes as well?


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Accepted Solutions
DanielV01
Expert Alumni

I live in NYS and telecommute to a client in CT through a consulting company in PA. Do I need to file state tax forms in NYS, PA and CT?

Yes to NY.  You are a NY resident and NY taxes all of your income no matter where it is earned.  If you earn income in another state, you will receive a credit for the income tax you pay on that same income to the other state.

No to PA.  Although the company's main office is in PA, your work is not associated with Pennsylvania, but with the Connecticut client.  If you were physically going to Connecticut, the income would not be taxable to PA unless you lived there.

No to CT.  If you were physically travelling to Connecticut, you would file a nonresident return for Connecticut income.  However, telecommuting is not considered by Connecticut as taxable, based on this website:  http://www.ct.gov/drs/cwp/view.asp?a=1479&q=277548.  It says in part:  

Nonresident Employees Working in CT

Wages of a nonresident are subject to Connecticut income tax withholding if the wages are paid for services rendered in Connecticut. Wages of a nonresident are not subject to Connecticut income tax withholding if the wages are paid for services performed entirely outside of Connecticut.  (Italics added)

If you were living in Connecticut and telecommuting for a NY office, NY does tax you as a nonresident, but the reverse is not true.  You have filed accurately by only filing the NY resident return if you don't physically go to the Connecticut office.
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3 Replies
DanielV01
Expert Alumni

I live in NYS and telecommute to a client in CT through a consulting company in PA. Do I need to file state tax forms in NYS, PA and CT?

Yes to NY.  You are a NY resident and NY taxes all of your income no matter where it is earned.  If you earn income in another state, you will receive a credit for the income tax you pay on that same income to the other state.

No to PA.  Although the company's main office is in PA, your work is not associated with Pennsylvania, but with the Connecticut client.  If you were physically going to Connecticut, the income would not be taxable to PA unless you lived there.

No to CT.  If you were physically travelling to Connecticut, you would file a nonresident return for Connecticut income.  However, telecommuting is not considered by Connecticut as taxable, based on this website:  http://www.ct.gov/drs/cwp/view.asp?a=1479&q=277548.  It says in part:  

Nonresident Employees Working in CT

Wages of a nonresident are subject to Connecticut income tax withholding if the wages are paid for services rendered in Connecticut. Wages of a nonresident are not subject to Connecticut income tax withholding if the wages are paid for services performed entirely outside of Connecticut.  (Italics added)

If you were living in Connecticut and telecommuting for a NY office, NY does tax you as a nonresident, but the reverse is not true.  You have filed accurately by only filing the NY resident return if you don't physically go to the Connecticut office.
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Consultant-Q
New Member

I live in NYS and telecommute to a client in CT through a consulting company in PA. Do I need to file state tax forms in NYS, PA and CT?

If I physically travel to the in CT on occasion, should I file a nonresident return for that portion of my income? If so, should my employer, based in PA, withhold CT taxes?

Thanks for the insight!
DanielV01
Expert Alumni

I live in NYS and telecommute to a client in CT through a consulting company in PA. Do I need to file state tax forms in NYS, PA and CT?

Yes to CT nonresident, and (in theory) yes to CT withholdings
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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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