I work for a NY company, remotely from NC. I spent 1 day in 2017 on site, but my W-2 has full salary in the state earnings boxes for both NC and NY. How can I allocate?

[Hal_Al]

@boomintruth 

What you gotta do us convince your employer to stop withholding NY tax.  I think your accountant is right, you should get a full refund.   Your employer is just doing what's easiest for him (make you explain to the NYS Department of Taxation and Finance why you don't owe tax, instead of him).  Maybe after you show them you got a full refund the first year, they'll stop. 

[boomintruth]

@Hal_Al 

 Yes, so the situation is even more convoluted.  I work for an LLC based out of Michigan, which is owned by a very large media company based in NYC. So not only do I live and work in Florida for a company based in Michigan, I would never have been offered the option to work at the headquarters of its parent company in NYC.  But, because my paycheck comes from the HQ of the media company, I apparently have to pay taxes in NYS (at least according to HR).  Speaking with my new boss, this affects all employees of the LLC in MI.  The situation seems insane to me. Like, if I didn't live where I do, I would not have been offered the job in the first place. Instead I have to cross my fingers each year and hope I get my 6.6% loan to the state of new york back as a refund.  Crazy

[jennyr63]

I have worked for a company in NY for 32 years, the last 14 of those were remote from Florida - my choice.  Have paid NY State taxes for those 14 years as a non-resident.  Was laidoff recently, and trying to apply for unemployment from either state is proving to be extremely difficult.  NY UI said company reported 100% of earnings as FL, though my W2 makes no mention of FL.  All wages on W2 are NY. 

[Hal_Al]

@jennyr63 

Not a tax question.  You won't get any help, in this forum, by tagging on to an existing thread.

[jennyr63]

actually, NY employer, reported my earnings to FL, but I've been paying 100% NY withholdings.  So it is a tax question.  

[DanielV01]

@jennyr63  Unless we are misunderstanding your situation, your issue seems related to whether or not you qualify (or from which state you qualify) to receive unemployment insurance compensation.  Unfortunately, that situation is not resolved through the tax return.  You will need to resolve that issue with either Florida's or New York's unemployment department.

This website can assist you for NY:  NY Unemployment Assistance.  Part of the issue is not just whether or not you paid NY Tax on the income, but whether the company contributed to NY Unemployment.  The same is true with Florida.

Therefore, you may want to contact your [former] employer.  They may be able to assist.  Otherwise, it's not a question that we can assist with in this forum.  Apologies.

[Hal_Al]

"NY employer, reported my earnings to FL"

FL doesn't have an income tax dept to report to.  I wouldn't think that the  fact that the employer may have been reporting wages to the FL dept of unemployment, instead of NY UI, doesn't change NY's ability to withhold income  tax.  As previously explained, in this thread, you are required to pay NY income tax, under the convenience of the employee doctrine  and your employer was correct  to withhold it. 

I'm not sure what your question is.  I originally took it to ask "how do I get one of these states to pay me unemployment compensation?"

[kristinelbly]

@jennyr63  the response provided by @DanielV01 was correct. Withholding taxes and unemployment insurance are two different things, controlled by two seperate departments (Department of Tax and Finance versus Department of Labor). Your withholding tax is based on where your employer has offices or where your employer sends you to work.  Your unemployment insurance is based on where you are physically perform your services. Most of the time they are the same, but not always, as is your situation. So you are a NY employee in the eyes of tax, but are a FL employee in the eyes of unemployment. Hope that helps, and best of luck to you. 

[jennifervphan]

Hello,

I am in a similar situation. I work for a NY company and just moved from NY to WA as of Sept 2021. My work in state is NY and live in state is WA; I will be working remotely from WA. I noticed my paycheck was taxed as if I live in NY. Based on what I am reading, I will need to file a federal tax return, a NY state return and WA state return. Do you know if I will receive a tax credit from WA from Sept 2021 to Dec 2021? Or will I still have to pay NY state tax even though I moved to WA now where there is no state income tax?

[TomD8]

@jennifervphan --

If you are working remotely for your own convenience and are not required to do so by your NY employer, then your 2021 work income is taxable by NY, both before and after your move..  

Since you moved this year, for tax year 2021 you will file a part-year resident NY return in addition to your federal return.  You will allocate ALL your NY income to the state of NY.

There is nothing to file for WA since WA has no income tax.  There is also no "tax credit" to be had from the state of WA.

[unknownzack]

Hi,

Similar but different situation. I work for a large company in their satellite NYC office and have purchased a home and settle in FL since Nov 2020 with my wife and two kids. I work remotely and live in FL since than and have not return to work in our NYC office since then. Our kids goes to school in FL and we have only set foot in NYC for a few days total in 2021 to list and sell our Condo since our move, which finally sold in Nov 2021. Note that we also have a small studio apartment in NYC that is rented out and haven't been sold yet. I have changed my resident state with HR to FL effective 1/1/21 and have still been withheld NYS and NYC taxes for the whole of 2021. Given my situation, am I correct that NYC taxes does not apply to me since I'm not a resident or have lived in NYC in 2021; but for a few days to list and sell and much less than the 184 days requirement?  In regards to NYS taxes, can we assume that NYS tax would still likely apply given the telecommuter convenience rule, even though we only set foot in NYC for a few days to list and sell and not work for the whole of 2021. If the above is correct, would we file as a NY nonresident to claim back NYC taxes and just pay the NYS tax portion? Thank you.

[kristinelbly]

Assuming you are living in Florida for the indefinite future, not just temporarily as a result of the pandemic, you are not a NYC resident for all of 2021. Your employer is incorrectly withholding NYC taxes, which are only applicable if you are a City resident. I would speak with someone in your payroll department regarding that for 2022. 

On the NYS wages, if you did not work a single day in New York in 2021, you do not owe any New York State taxes either. 

NYS Regulation Section 132.18(a) states "If a nonresident employee (including corporate officers, but excluding employees provided for in section 132.17 of this Part) performs services for his employer both within and without New York State, his income derived from New York State sources includes that proportion of his total compensation for services rendered as an employee which the total number of working days employed within New York State bears to the total number of working days employed both within and without New York State."  

In the Matter of Arthur Hull Hayes, the court determined that in order to be subject to Section 132.18(a), and therefore the convenience rule to apply, an employee had to be performing at least some service for his employer within the State of New York. If you do not perform any services for your employer in the State of New York, Section 132.18(a) does not apply to you regardless if you have a New York employer or not. 

If you do not anticipate working a single day in New York during 2022 either, I would suggest submitting an IT-2014.1 form to your employer indicating you are not a resident of the City and that you anticipate working 0% from New York in 2022. 

You should apply for a refund of your State and City tax withholdings when filing your full-year nonresident personal income tax return. You may still have New York Source income, if you have net rental income from your studio apartment.

Happy New Year. 

[TomD8]

@unknownzack --

Q:  "Given my situation, am I correct that NYC taxes does not apply to me since I'm not a resident or have lived in NYC in 2021; but for a few days to list and sell and much less than the 184 days requirement?"

A:  That is correct.  Since you were not domiciled in NYC and did not spend 184 days in NYC during the tax year, your income is not subject to the NYC local income tax.  You should file NYS Form IT-2104.1 with your employer to cease the NYC withholding.  Here's a link:

https://www.tax.ny.gov/pdf/current_forms/it/it2104_1_fill_in.pdf

Q:  "In regards to NYS taxes, can we assume that NYS tax would still likely apply given the telecommuter convenience rule..."

A:  Also correct.  NYS regards your telecommuting income to be NY-sourced (and thus taxable by NYS) unless your work is performed at a "bona fide employer office" in your state of domicile.  Pages 2-3 of this web reference gives NYS's rules for determining what is a "bona fide employer office":

https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

Q:   "If the above is correct, would we file as a NY nonresident to claim back NYC taxes and just pay the NYS tax portion?"

A:  Yes, assuming you don't work at a "bona fide employer office" in FL. 

[kristinelbly]

@TomD8 you missed that part of his description where he said that he didn't perform services for his employer in New York at all during the 2021 tax year. The bona fide office of his employer is not applicable in his situation, for the tax year in question. 

[kristinelbly]

@jennifervphan If you moved to Washington and no longer maintained a permanent place of abode in New York State from October-December 2021, you will file a part-year New York State return for 2021. Alternatively if you had a residence available for your use through December, and spent more than 183-days in the State, you will file a full-year resident return for 2021. You wont be required to file any return in WA for 2021, as they don't currently impose an income tax. 

If during the tax year 2022 you will be required to travel occasionally to the New York office to work, your wages will be subject to tax in New York State at 100% based on the convenience rule. However, if you are truly a remote employee and will not perform services in New York on a going forward basis, your wages will not be subject to NY tax (see more detailed response in thread below). Your employer may continue to withhold NYS taxes, because withholding laws are different than personal income tax laws, but you will be justified in claiming a refund of those tax payments on your New York nonresident return when you file.