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Working Remotely in California; Office in New York
Hello,
I am currently working for an office in New York from California (I plan to stay in California and eventually work for an office here, but that transfer won't be processed for at least another month). I was wondering what the tax implications would be for my income earned here until then. Will I be double-taxed by both states? Or can I claim credits from taxes paid to one state to offset taxes in the other?
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Working Remotely in California; Office in New York
You should only pay taxes to California, not to New York.
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Working Remotely in California; Office in New York
New York taxes teleworkers so you will have to file a non resident NY return but you will get a credit on the CA return for the taxes you pay to NY. I highly recommend you talk to a local CA tax pro to make sure there were no special Covid related exceptions that may apply.
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Working Remotely in California; Office in New York
New York, Pennsylvania, Nebraska, Delaware and New Jersey have the aggressive telecommuting rules. If you work outside one of those states as a job requirement, you are only subject to that state's income tax on the days you work there.
But if you work outside the state for your own convenience, you are subject to that state's income tax on all your income. For guidance see: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html
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