State Tax

[telvedin]

Working remotely for company located in NY, pay NY state tax for full year, but living in VA whole year. Need ask if I am required to pay VA tax as well or am I required to file VA tax as company is located in deferent state and I pay taxes to state that company is located. 

[TomD8]

Your State of Residence can tax all your income, regardless of its source.  So your income is 100% taxable by your home state of Virginia.

If you're a non-resident of New York, and your remote work was 100% carried out from a Virginia location, then it is not taxable by New York.  New York taxes non-residents on income from work actually (physically) performed within the State of New York.  Was any of your worked actually carried on in New York, even for a single day?

[telvedin]

No I never was in New York never even visited. When I do my state tax it will not allow me to change allocation for state it is automatically selected 100% allocation to state Ney York.

[Cynthiad66]

If your W-2 shows NY state taxes were withheld you will need to file a NY state Non-Resident tax return first.  Then prepare your VA return after and the MY return.  This will cause the returns to calculate properly, if all questions are answered accurately.  It is important to prepare your home state last.

See the link below for additional information.

How Working Remotely Affect Taxes

@telvedin

[TomD8]

TurboTax has a help article on allocating to New York:

How to enter New York State income as a nonresident in TurboTax (intuit.com)

On your non-resident NY tax return you should enter zero NY income, but the return should show the NY withholding.  This should result in a full refund of the incorrectly withheld NY taxes.

In addition, you should ask your employer to cease withholding NY taxes from your pay, and to begin withholding Virginia taxes instead.  If they will not withhold VA taxes for you, then you must make quarterly estimated tax payments to Virginia, so as to avoid possible penalties.

https://www.tax.virginia.gov/individual-estimated-tax-payments

[telvedin]

I did I selected Nonresident on NY state, but still after I go thru all this I cannot change allocation of the tax it always stay 100% NY State income. And when i go to VA state i still own for VA same amount I pay to NY.