Convenience rule

[CABseekingknowledge]

I live in Virginia and was hired to work remotely for a company based in New work State. Would my home office be considered a bona fide employer location? Or would NY still tax my income? Would I be able to get back all the money I paid to NY in taxes since I live and physically work in Virginia?

[Cynthiad66]

  No your home office would not be considered a Bona-fide employer location. 

Yes NY will be able to tax your income.

Yes you will be able to file as a Non-Resident of NY to receive credit for the withholding on your Virginia return

New York state is one of those states with strict filing requirements for Non-Residents.   

You will need to file a nonresident return for NY if there is NY withholding on your W-2.  If you are filing a resident return for Virginia, you will be given a credit for the amount of tax you must pay on this telecommuting income to the other state.

Use the links below for further guidance on these issues:

How to Enter NY income as a Non-Resident

NY Department of Tax on Non-Residents

NY State Non-Resident Workers

[Critter-3]

If you work in VA from home because the employer has no office in VA for you to work out of then you will file a NY non resident return and pay taxes to NY   however your VA resident return will give you a credit for the taxes you pay on the same income to NY.   Complete the NY return first in the program so the proper credit can be  calculated.