Relocated to NC from NYC but working remoted for NYC based company

[BR8]

Hi,

In February of this year (2021), I relocated from NYC to North Carolina. I have continued to work remotely for my NYC based employer from North Carolina. I have not returned to NYC since I left in February. My employer has continued to withhold NY State taxes, and not NC taxes. I believe I will owe NC state withholding when I file. I have three questions:

1. Will I be double taxed in NC and NYC?

2. What happens if my NYC employer will not withhold NC state taxes? (I am asking them today)

3. Should I, and if so, how do I start making estimated withholding payments to NC? 

Thanks for your help.

Confused transplant

[Critter-3]

1. Will I be double taxed in NC and NYC?  You will need to file a NY return and pay NY taxes however NC will give you a credit on the NY taxes so you are not really double taxes.   You must complete the NY return first in the program so the credit flows to NC properly.

2. What happens if my NYC employer will not withhold NC state taxes? (I am asking them today)  Don't expect them to do that as it is extra work.

3. Should I, and if so, how do I start making estimated withholding payments to NC?  Yes, estimates would be required if withholding will not happen ... you can decide if this is needed next year once you have filed the 2021 return.  You will not have any penalties for the first year because you didn't file a NC return last year. 

[BR8]

Thank you! This is so helpful, and such a relief.