Non resident new york taxes

[jnnfrjb]

We live in Florida and my husband just started a job in New York. He travels a lot and is only in the New York office about 8 days a month. His current company has him paying New York state taxes. Will we get a refund on the NY state taxes he has paid - from what I have read, we are only responsible for taxes on the days he actually worked in NY. Is this correct? If so, how do we ensure we get a refund, since his company is taking out taxes as if he is a NY state resident, when he is not?

[KeshaH]

New York has a rule called the "convenience of the employer rule". This means that if your husband's job is based in New York but works outside of New York for his own convenience (rather than because his employer requires him to work in Florida), then New York can tax all of his income - not just the days he physically worked in New York.

This means that even if he only physically works in New York 8 days a month, New York may still consider 100% of his income as New York sourced income if:

1. His official work location is in New York

2. He's working outside of New York by his choice rather than by necessity for the employer.

If the convenience of the employer rule applies, you may not be eligible for a refund of all those NY taxes. All of the income that he earned for that employer would be taxable to NY. The only ways around this would be if:

- his employer specifically assigned him to work outside of New York (employer necessity)

- he has a formal work arrangement stating that Florida is his primary work location

[jnnfrjb]

Thank you for your response.  During the interview process they asked if he was going to relocate and he said no, but they do have him coded as working in NY. His job does require him to travel around 60% of the time does this make a difference?

[KeshaH]

Since his position genuinely requires travel as part of his job duties, and he informed them during the interview that he would not relocate, you could consider the days he worked outside of New York as "employer necessity" rather than personal convenience. In this case, you would only need to report the income he earned while he was physically present in New York. 

In the event that New York requests documentation proving that this would not be considered New York source income, you should maintain detailed records of work locations, document that travel is a requirement of the position, and keep any documentation that shows the employer acknowledges your husband works primarily outside of New York.