25 June 2022 21:33

Living in Florida working remotely – NY employer withholds NYS taxes – Correct or Incorrect?

Do have to pay NY State Tax if I work remotely?

New York-Based Employees Who Work Remotely Out-of-State Are Subject to New York Income Tax. New York State taxes New York residents on worldwide income and nonresidents only on New York source income. There are three key considerations in determining whether a person is a New York tax resident.

How do taxes work if you work remotely in a different state?

A worker may have tax obligations in any state where they reside and possibly the state where their employer’s worksite is located. A permanent remote worker will file their personal income taxes in their state of residence, whether they are a W-2 employee or a 1099-NEC independent contractor.

Is income tax based on where you live or work remote?

But your chances for double taxation go up if your employer is based in one of the five states — Connecticut, Delaware, Nebraska, New York, and Pennsylvania — that have what’s called a “convenience rule.” That rule basically asserts that a state has the right to impose an income tax on wages you earned while working

Do I pay NY state tax if I live in Florida?

In general, unless your employer specifically acted to establish a bona fide employer office at your remote location, you will continue to owe New York State income tax on income earned while working remotely.

What if I worked in New York State but live in another state?

As a resident, you pay state tax (and city tax if a New York City or Yonkers resident) on all your income no matter where it is earned. As a nonresident, you only pay tax on New York source income, which includes earnings from work performed in New York State, and income from real property located in the state.

Does New York tax out of state income?

Nonresidents still may have to pay New York state tax on income they receive from New York sources. This means you may need to file a New York state tax return even if you live in another state but made money from: Services performed in New York.

Can remote workers deduct home office?

The home office deduction may be one of the biggest work-from-home expenses a self-employed person can take since you can take a deduction that is a portion of your home mortgage interest or rent, property taxes, homeowners insurance, utilities, and depreciation based on the square footage of space used directly and

Can 2 states tax the same income?

Federal law prevents two states from being able to tax the same income. If the states do not have reciprocity, then you’ll typically get a credit for the taxes withheld by your work state.

Does working from home affect taxes?

Employees who work from home can no longer claim tax deductions for their unreimbursed employee expenses or home office costs on their federal tax return.

Do I have to pay NY taxes if I don’t live there?

In most cases, if you don’t live in New York City you aren’t required to pay New York City personal income tax.

How do I avoid NY state tax?

Table of Contents

  1. Avoid or Defer Income Recognition.
  2. Max Out Your 401(k) or Similar Employer Plan.
  3. If You Have Your Own Business, Set Up and Contribute to a Retirement Plan.
  4. Contribute to an IRA.
  5. Defer Bonuses or Other Earned Income.
  6. Accelerate Capital Losses and Defer Capital Gains.
  7. Watch Trading Activity In Your Portfolio.

Do I owe NY state taxes if I live in another state?

You are subject to New York State tax on income you received from New York sources while you were a nonresident and all income you received while you were a New York State resident. You may have to pay income tax as a resident even if you are not considered a resident for other purposes.

Which states have tax reciprocity with New York?

Note: NY and NJ do not have reciprocity. If you work in NY and live in NJ, you will need to pay NY income taxes as a non-resident and pay NJ income taxes as a resident.
Reciprocal agreements and courtesy withholding.

Resident State Work State Non-resident Certificate
North Dakota Montana MT-R
Pennsylvania New Jersey NJ-165
Minnesota, Montana North Dakota NDW-R