NYS TAX filing

[christom0818]

Hi, 

I’m a remote worker based in New Jersey with an assigned office location in New York City. When I started my job, a payroll error resulted in a couple of thousand dollars earning being withheld for New York State taxes due to an incorrect exemption flag. Once the issue was identified, the configuration was corrected, and no further NYS taxes were withheld.

As i am preparing tax filing for 2024, I noticed that my one of the W-2 form shows NYS state wages in Box 16 that are equal to the federal wages in Box 1. ( another document from my employer indicates that my total New York state wages should only be around $5,000 (from my first paycheck)). I have never worked in New York State, nor have I signed a timesheet indicating New York as my work location.

Aside from filing the INT-203B for New York, is there any additional action I should take to ensure that my income is reported correctly and to avoid any potential issues with underreporting?

[KeshaH]

When you have NY income reported on your W-2, the state requires that NY state wages in box 16 equal the amount in box 1 - even if you were a part year resident or nonresident for the year. You'll have to allocate your income properly within the New York state return section.

Since you have an assigned office within New York, you may be subject to the convenience of the employer rule - which means that any income that you earn for a New York based employer is considered New York source income and therefore taxable to New York. This is true even if you worked 100% remotely out of the state.

The same income would also be taxable in New Jersey, since you lived there. To avoid paying tax twice on the same income, you'd qualify for a credit on your New Jersey return for some of the tax paid on your New York return.