NYS resident, working as a fulltime remote employee for a PA company. how to file?

[jc12583]

There seems to be varying opinions throughout TurboTax on whether my situation requires filing a state return in both PA and NY.  My PA employer does not withhold any PA tax.  Is that in error as it seems PA is one of those states that treat telecommuting work as taxable in the state where the employer is located?  Perhaps my employer is claiming that I work remote under the convenience of the employer rule, but does that ruling need to be made official in writing? 

Do I need to file in PA as a nonresident?  If I can get an official ruling from my company that I work remote at their convenience, do I still need to file in PA?  If I have to file in PA, will NY provide a credit for taxes paid to PA or will I be double taxed?

@remote work @convenience rule 

[LenaH]

It depends. You are a resident of New York and earn your wages in New York. You should not have to file a Pennsylvania return. Per the State of Pennsylvania, you only have to report Pennsylvania income tax on compensation for services performed in Pennsylvania. 

However, the question that will determine whether you have to file a nonresident return for Pennsylvania is whether or not you have a workspace at the Pennsylvania location or has your job always been performed in New York? 

When determining the taxability of income for telecommuters, the Pennsylvania Department of Revenue looks to the employment agreement between the employee and their company. If the agreement provides the employee with a physical workspace at the employer’s PA location and the employee elects to perform their work outside of PA, then the income for that employee is allocated to PA. If the employer does not have a physical work space in PA available for the employee to perform their duties and the work is performed outside of PA strictly for the benefit of the employer, the income for that employee is then allocated to the state in which those duties were performed.

If you did have to file a nonresident return for Pennsylvania and a resident return in New York, you will not be double-taxed. New York will give you a credit of taxes assessed by another state. 

[Edited 3/10/21 l 5:50PM PST]