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TLM5
Level 2

NC resident working remote for NYC co

Hi - I’m not sure I’ve seen this scenario before, but I am a NC resident but work for a NYC company and I do go into the NYC offices a few times a year. My paystub deducts NY state income tax.
I believe I will have to file a nonresident NY state tax return and pay income tax on all my income earned in 2023, but will also need to file a NC return as NC will issue a tax credit on (all?)  the income tax I paid for NY. Is this correct or am I missing something? Is there ever a scenario where I will have to pay income tax in NY AND NC, paying multiple taxes on the same income? Thanks in advance for any guidance. 

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Accepted Solutions

NC resident working remote for NYC co

@TLM5 as noted, you will file a NY non-resident tax return and the  file a NC resident tax return.  DO THEM IN THAT ORDER

 

the NC return will give you a credit for the tax paid to NY so that you are not paying state tax on the same dollar in both states.  Because the NY tax rate is higher than the NC tax rate, it is unlikely you will owe anything to NC. (note they will not be giving you cash back given the NY tax is higher than the NC tax). 

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6 Replies

NC resident working remote for NYC co

 

NC resident working remote for NYC co

@TLM5  NY has this 'wierd' law that separates who is working for a NY firm from another state between those who are working outside of NY for their personal convenience and those that are required to work in the other state?

 

which defines your situation? are you working from NC at your convenience or does your job (and therefore your employer) require you to be in NC to do your job? it's another way of asking, 'why is your employer withholding NY tax and not NC tax"? 

TLM5
Level 2

NC resident working remote for NYC co

@NCperson It’s for personal convenience so I assumed they took out NY state taxes on my paystubs because the company is domiciled in NY and my work is considered a product of a NY company, nothing to do with NC? 
Thanks for taking a look! 

NC resident working remote for NYC co

@TLM5 as noted, you will file a NY non-resident tax return and the  file a NC resident tax return.  DO THEM IN THAT ORDER

 

the NC return will give you a credit for the tax paid to NY so that you are not paying state tax on the same dollar in both states.  Because the NY tax rate is higher than the NC tax rate, it is unlikely you will owe anything to NC. (note they will not be giving you cash back given the NY tax is higher than the NC tax). 

TomD8
Level 15

NC resident working remote for NYC co

"Is there ever a scenario where I will have to pay income tax in NY AND NC, paying multiple taxes on the same income?"

 

No.  The Supreme Court ruled in 2015 that two states may not tax the same income.  See this:

https://www.cpajournal.com/2017/10/26/icymi-supreme-court-rules-two-states-may-not-tax-income/

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
TLM5
Level 2

NC resident working remote for NYC co

@NCperson @TomD8 thanks so much for your responses!

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