I live and work in Florida for a NY based company. My company took out nearly $1600 from my income for NY State Taxes. How do I get a refund?

[jerseyreisner]

I live and work full time in Florida. My company issued a W-2 which shows that they took out nearly $1600 from my income. How do I proceed to get a refund from NY State?

[DanielV01 · Accepted solution]

It depends.  Although Florida has no state income tax, New York considers you working in New York if you are working remotely from home.  However, if you are working from a normal business location (an office, a store, etc.) you are not receiving New York income.

In either case, you will fill out a New York Nonresident Return, and then go to the Allocation section.  If you work from home, you will not need to Allocate income   See this link to the Allocation form:  IT-203-B (Fill-in).  You will notice that on lines 1h-1j, you enter the days you worked outside of New York, but subtract the days you work from home.  However, if you did not work from home, then you worked outside New York 365 days, and your New York income will be zero.  You will get back all of the tax you paid in.

[singardia]

DanielV01,

       I had someone ask what the rules would be in her son went to Florida for 2 months to work, but then came back home.   He worked on a golf course in Florida.    I thought that NY would tax any of the income he earned in Florida since the Florida tax would be 0.    Is that correct?

[Hal_Al]

Q. I thought that NY would tax any of the income he earned in Florida since the Florida tax would be 0.    Is that correct?

A. Yes, NY will tax his FL income, but not because the FL tax is 0.  It's because he is considered a full year NY resident.  His FL time was a temporary absence.  If he had paid tax to another state, NY would give him a credit for that tax

[singardia]

Thank you for the reply.     What I meant to say was that he would pay the full NY tax since the Florida tax is 0.

If he paid a higher rate in another state (not likely though!),  he would not owe NY anything.

[yigal356]

I have the same situation, I worked remotely for a company in new York,but I didn't work from home, I worked from a co working location that i found and payed for myself. whats the rule in my case? get a get a refund for the ny tax that was deducted from my paycheck? i also worked from the ny office about one week every month

[Hal_Al]

@yigal356 

Depends on what " co working location that i found and payed for myself" really means.  If you did nothing more there than you would do at home, you still don't meet the convenience of the employer rule*.  All your income is taxable by NY.  You paying for it, instead of the company, doesn't help your case. Although the company paying for it, alone, would not be enough to meet the conveniece test.

If the "co working location" provided some function that couldn't be accomplished by you working in NY, then maybe that time  is not taxable by NY.  The one week a month would still be NY source income

*If you work outside the state as a job requirement, you are only subject to New York State income tax on the days you work in New York. But if you work outside New York for your own convenience, you are subject to New York State income tax on all your income. Pennsylvania, Nebraska, Delaware and New Jersey have the same rule. For guidance see: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html

[jacklynhydejr]

Is this answer still relevant during COVID, ie. is remote work for a NY based company conducted from a residence in Florida still considered the same as doing the work from NYC itself?

Ultimately, will I be taxed as a NYC resident or a Florida resident?

[Hal_Al]

@jacklynhydejr 

Yes. NY is going by the same rule during covid. 

https://www.hodgsonruss.com/assets/htmldocuments/Telecommuting_5.22.20.pdf  State Guidance related to COVID-19: Telecommuting Issues. Updated last on Feb 1, 2021

[DanielV01]

@jacklynhydejr  One extra point.  You will be taxed in New York state on the income.  However, New York City does not tax nonresidents on income.  Therefore, you will not be taxed in New York City unless:

• You maintained an abode in NYC (such as a co-op or an apartment you still rented in the city); and 
• You were physically present in NYC in at least 184 days of the year

If you meet both of these conditions, your income is taxable to both New York City (and New York State) as a resident.  (This is called a statutory resident).  If you do not meet both of these conditions, then your income is taxable to New York State only as a nonresident.

For more information on this subject, please see this website:  New York Income tax definitions

[jacklynhydejr]

@Hal_Al @DanielV01 Thank you for those useful resources. If I may ask one more question - my company is currently registered to withhold and remit payroll taxes in Florida (amongst a number of other states) for those that have relocated. Does that change anything with respect to the NY taxation situation for a Florida resident who works remotely (for personal reasons from a private residence) for a NYC company?

[Hal_Al]

Q. my company is currently registered to withhold and remit payroll taxes in Florida (amongst a number of other states) for those that have relocated. Does that change anything with respect to the NY taxation situation for a Florida resident who works remotely (for personal reasons from a private residence) for a NYC company?

A.  You'll have to ask your employer that, but I very seriously doubt it. 

[DanielV01]

@Hal_Al Thank you for that useful resource. If I may ask one more question - my company is currently registered to withhold and remit payroll taxes in Florida (amongst a number of other states) for those that have relocated. Does that change anything with respect to the NY taxation situation for a Florida resident who works remotely (for personal reasons from a private residence) for a NYC company?

There really is no payroll tax withheld for Florida, because Florida has no state tax (although you may be talking about business taxes the company could be responsible for since they are operating in Florida).

But New York is the most aggressive state in enforcing taxation of out-of-state telecommuters, and was so well before COVID.  And the reasoning they use is what you mention in this post:  you are working for personal reasons from your private residence, and not because the employer needs you to work from home.  This is called the "Convenience of the Employer" principle, and New York has alleged (up until now successfully), that they can still tax you on this income.

This could change, as there are lawsuits that have arisen between a number of states because of the temporary COVID provisions and remote work.  Some states allege that it is not proper for states (such as New York) to be taxing residents of their state for work performed when they are not physically present there.  However, since that is as of yet unresolved, you should be prepared to pay New York tax on your income.

[BD17242]

@DanielV01Thanks for your clarity on this subject. 

I maintained a perm primary residence as per bullet point 1 in NYC, but spent less than 30 days in NYC for 2020 (all other 335 days working from Europe\Africa or remote at my 2nd home in FL). Is there a specific form to file to reduce the NYC tax? I only saw a partial city section to specify NYC vs Yonkers.

I understand based on the feedback below that I'm still subject to a full year of NY state tax, but if I understand correctly I could reduce my NYC tax bill.

[Irene2805]

According to the New York State Department of Taxation and Finance: 

The requirements to be a New York City resident are the same as those needed to be a New York State resident. You are a New York City resident if:

• your domicile is New York City; or
• you have a permanent place of abode there and you spend 184 days or more in the city.

[Source:  Frequently Asked Questions about Filing Requirements, Residency, and Telecommuting for New York Stat...]

To indicate your NYC residency:

1. As you go through the interview for your New York return, you will come to a screen, Your City Residency Information.
2. Click Edit next to your name.
3. Mark the radio button for Part-Year Resident and enter the dates of your residence.

@BD17242