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IN 2022, Company moved offices from NY to NJ. I live in NJ and that office is where I will spend most time. Do I have to pay NY taxes?

Historically, I filed NY Nonresident tax return and also filed NJ taxes.  
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3 Replies
rjs
Level 15
Level 15

IN 2022, Company moved offices from NY to NJ. I live in NJ and that office is where I will spend most time. Do I have to pay NY taxes?

It sounds like, even though you will work in New Jersey most of the time, you will still be doing some work in New York. You have to pay New York tax on the income that you earn for working in New York. Your company should keep track of the days that you work in New York and the days that you work in New Jersey. They should withhold tax for each state based on the amount of time that you work in that state, and your W-2 should show New Jersey wages based on the amount of time that you worked in New Jersey. You will still have to file a New York nonresident tax return for the income that you earn in New York, in addition to your New Jersey resident tax return.


New York has an unusual rule that the New York wages in box 16 of your W-2 has to be the same as the federal wages in box 1. So on the W-2 it looks like all your income is from New York. You adjust your New York income on your New York tax return, based on the number of days you worked in New York. You probably haven't paid any attention to that adjustment in the past, because all of your income was from New York.


You will get a credit on your New Jersey tax return for part or all of the tax that you pay to New York, as you have in the past. The credit will, of course, be smaller because only a small part of your income will be from New York, so you will be paying much less New York tax.


I suggest that you keep track yourself of the number of days you work in each state, to make sure the company is getting it right.

 

IN 2022, Company moved offices from NY to NJ. I live in NJ and that office is where I will spend most time. Do I have to pay NY taxes?

Thank you so much. 
Two follow up questions:

 

1) it’s likely that I would only visit NY offices fewer than 12 times annually. Does that still mean I would allocate ? Note that I also visit my company’s other offices in other states for the same reason. How does that logic apply to state taxes?

 

 

2). currently, my company has not taken any withholding for New York. It’s all been for NJ. is there a way I can instruct my company to deduct accordingly ? 

3) I am working remotely most of the time especially. Is during the pandemic.  (I am considered “field based” in our HR structure). Does this change anything ?

 

 

rjs
Level 15
Level 15

IN 2022, Company moved offices from NY to NJ. I live in NJ and that office is where I will spend most time. Do I have to pay NY taxes?


@casaletaxesnew12 wrote:

1) it’s likely that I would only visit NY offices fewer than 12 times annually. Does that still mean I would allocate ? Note that I also visit my company’s other offices in other states for the same reason. How does that logic apply to state taxes?


Legally, yes, you should allocate your pay based on the number of days that you work in each state. That applies to all states, not just New York. But realistically, no one does that if it's just a few days here and there. And New York is not going to come after you about it unless you are someone like an entertainer or professional sports player who can make tens of thousands or hundreds of thousands of dollars for a one-day appearance in the state.

 

Your original question was about only two states. If other states are involved it could get very complicated. You would probably need professional help.

 

 


@casaletaxesnew12 wrote:

2). currently, my company has not taken any withholding for New York. It’s all been for NJ. is there a way I can instruct my company to deduct accordingly ? 


The fact that they are not withholding New York tax suggests that they are not keeping track of the days that you work in New York. You could talk to the payroll people, ask them to withhold New York tax, and give them a Form IT-2104. But if they are not going to report any New York income, and you are not going to file a New York tax return, you don't want them to withhold New York tax.

 

If you do have them withhold New York tax, make sure they also continue to withhold New Jersey tax. You are going to be paying most of your tax to New Jersey.

 

 


@casaletaxesnew12 wrote:

3) I am working remotely most of the time especially. Is during the pandemic.  (I am considered “field based” in our HR structure). Does this change anything ?


In your original question you said you will spend most of your time in the New Jersey office. Now you say that you work remotely most of the time. You have to clarify where you are working, and how much of the time you are working in each location.


Whatever "working remotely" means, it certainly could change the picture. As a general rule, what matters is where you actually do the work. An important possible exception, especially with regard to New York, would be if you are working remotely because you prefer to work from a different location, not because your employer wants you in that location for business reasons. "Field based" is not a tax term. I don't know what that means with regard to taxes. Again, what generally matters is what state you are in when you do the work that you get paid for.


It appears that your situation is somewhat more complicated than you originally indicated. You may need to consult a local tax professional to clarify what your obligations are with regard to state taxes.

 

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