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Live and work remotely from NYC for a company based in Philadelphia.

Subject sums it up - the organization I work for is based in Philadelphia and this year I moved from PA (outside Philadelphia) to New York City. Kept the same job and my hybrid schedule only has me going into the office 1 day a week, but I will land at around 30 days working in Philadelphia over the entire year. The rest of the time I have either been traveling for work or working remotely from NYC. I'm assuming that I will recoup Philadelphia city wage tax for all but the 30 days that I worked in the office, however I am wondering if I will have to pay NYC city wage tax for the time working remotely in NYC? Also, will I have to pay both PA & NYC state tax for when I'm living in NYC? Any help is appreciated, thanks in advance!

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1 Reply
TomD8
Level 15

Live and work remotely from NYC for a company based in Philadelphia.

Once you become a resident of NYC, all your income, regardless of where you earn it, is subject to both NYS income tax and the NYC personal income tax.

 

With regard to PA state income tax on the income you earn remotely after your move to NYC, the answer is "it depends on the circumstances."  Here is PA's rule regarding taxability of telecommuter (remote) income:

 

"When determining the taxability of income for telecommuters, the Department of Revenue looks to the employment agreement between the employee and their company. If the agreement provides the employee with a physical workspace at the employer’s PA location and the employee elects to perform their work outside of PA, then the income for that employee is allocated to PA. If the employer does not have a physical work space in PA available for the employee to perform their duties and the work is performed outside of PA strictly for the benefit of the employer, the income for that employee is then allocated to the state in which those duties were performed."

https://revenue-pa.custhelp.com/app/answers/detail/a_id/3597/kw/remote%20worker

 

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