Hello,
I live full time in Florida and have recently taken a fully remote position for a company based out of New York City. I have filled out my federal withholdings, but because Florida does not have state income tax, I have not completed a state tax withholdings form. Am I supposed to complete any documentation before filing my tax returns next year?
Will I be taxed the same amount as someone living in the city? Will I have to file multiple tax returns and owe money to New York at the end of the year?
Thank you so much!
It depends. New York follows the convenience of the employer rule, meaning you may be subject to New York income tax if there’s no business reason why you are working remotely.
Nonresidents don’t have to pay New York City income tax.
New York is aggressive in taxing remote workers; however, court cases have decided that nonresident employers who are not required to work in NY and never work there are not subject to NY income tax. However, your employer may still withhold tax and NY may still audit you.
It’s best to get your employer’s take on your situation.
See the posts by @kristinelbly. She’s a former New York State auditor who works in a State and Local Tax group, specialising in New York State tax matters, at a large law firm.
Hello Ck,
New York state has rather complicated rules for determining whether non-residents working remotely should pay NY income taxes or not. This is based on the "Convenience of Employer " test in the link below.
https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf
For New York City, if you do not live in the city or maintain living quarters within the city, you do not pay New York city tax. Please see the section titled "What’s the difference between filing as resident vs. nonresident?" in the link below.