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Working remotely from Texas for a job based in New York City

I will be starting soon at a job based out of New York City but will be working remotely from home in Texas. I was just wondering what I can expect my employer to be withholding from the paychecks I will receive and what I will actually have to pay in the end? Texas itself doesn't have a state income tax, but New York state does and so does New York City. So I was just wondering what I will have to pay in the end? Also, how will I go about filing taxes? Will filing be different from when you and your employer are in the same state?

 
 
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3 Replies

Working remotely from Texas for a job based in New York City

You will file a non resident New York State return. You will see what is withheld on your pay stub which should cover your tax liability based on your W-4. 

TomD8
Level 15

Working remotely from Texas for a job based in New York City

New York follows the "convenience of the employer" doctrine with regard to taxation of non-resident remote workers.

This means that if you're working remotely because your employer obligates you to do so, your income is not subject to NY taxes.

But if you are working remotely for your own convenience, your income is taxable by NY.  In that case you would have to file a non-resident NY tax return at year's end, and pay NY taxes.

https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Hal_Al
Level 15

Working remotely from Texas for a job based in New York City

You will not be subject to NY City income tax, since you are not a resident.

 

As to NY state, it depends on more info.   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. You should discuss with your employer whether they intend to withhold NYS tax.  If they do, you'll  have to file a non-resident NYS return, either to get a refund or to report the income. 

 

Here's a link to New York's memorandum on its "convenience of the employer" tax doctrine regarding non-resident telecommuters: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

Also, see this more recent discussion, wherein the poster says it requires at least 1 day in NY to be subject to NYS income tax, even when it's for your own convenience.   https://ttlc.intuit.com/community/state-taxes/discussion/re-i-work-for-a-ny-company-remotely-from-nc... 

 

 

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