NY resident, NJ employer, but working from home during Covid

[DFMc]

I live in NY, but work for a NJ employer and usually work in my office in NJ.  Due to Covid, I have been working from home for most of 2020.  Ordinarily I file a non-resident return for NJ and receive a credit on my NY return for taxes paid to NJ.  How do I treat the days worked from home now? Are the days I worked from home attributable to NY or still to NJ because of the convenience rule?

[JohnW152 · Accepted solution]

They're still attributable to New Jersey.

During the period of the COVID-19 pandemic, New Jersey has stated that wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction.

Continue to file a non-resident New Jersey return and a resident New York return as you have in prior years.  

For more information, please see Telecommuter COVID-19 Employer and Employee FAQ.

[DFMc]

Thank you. If not for the special rules for Covid, when I work from home for my own convenience, would NJ say that it is NY source income because that is where the service is performed and therefore not taxable by NJ, or that it is NJ source income because that is where the employer is located?  I think NY rules would say it is NJ  source, because in the opposite situation (NJ resident with a NY based employer who is  working from home in NJ), NY would say it is NY source income and taxable by NY.  I believe my employer is only going to withhold taxes for NY if I am working in a company office in NY, not when I work from home in NY, so I want to make sure my withholding is not completely off from what I file.

[AmyC · Accepted solution]

Correct. When you are at home, you are working for a NJ employer that is the source of your income.