in Education
My daughter is a New York resident. In march due to Covid, she came home to temporarily live and work for me in New Hampshire. We do not have a state income tax. I have not been taking new york state taxes out of her paycheck. She will be going back to New York. She will get a W2 from my company. When she does her taxes, will she then just report the income on the state form? And then the taxes will be calculated? Is there any temporary status for her living in New Hampshire in which she wouldn't have to pay those New York state taxes since she was in New Hampshire for 8 months of the year?
Thank you
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@DeeLuxe , (a) your daughter not having established residency in NH is still a resident of NY; (b) Thus when she files her 2020 return she will need to recognize her NY income plus income from NH. (c) She should consider paying in some estimated state tax for NY -- because when she files , the out-of-state income will be taxed by NY and given credit for taxes paid to another state ( thus reducing the NY taxes owed ) but in this case she will have zero offset. If on the other hand she had been a resident of NH during these nine months ( and then go back to NY and change back to NY residency ), she could have avoided this tax bite. Did she register and vote in NH or voted in NY -- that would be a good test as to her intentions ( even if temporary ).
Thank you so much for getting back to me. Yes she did vote in NY and was always intending to go back but that Covid thing! I have just filled out a form with my payroll company~power of attorney~so that she can be taxed by the state of NY on her final two paychecks. So she could pay in extra at that point through those paychecks correct? If she wants to pay estimated taxes, would she go on a NY State revenue site? Thanks again!
@DeeLuxe , yes that should work -- both points. Don't forget that this year's W-2 may be a surprise for many --- if you took advantage of reduced payroll tax withholding ( this will come due when filing )
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