Author Topic: NY convenience of employer law  (Read 377 times)

doneby35

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NY convenience of employer law
« on: June 05, 2024, 09:15:42 AM »
Is anyone familiar with this law? Everything that Iíve researched so far is not too clear on the answer but Iím looking to understand if one is employed for a business headquartered in NY, but lives in another state and working 100% remotely, whether income would be double taxed in both NY and the state of residence, whereas in most cases your income would only be taxed in the state where you reside.

terran

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Re: NY convenience of employer law
« Reply #1 on: June 07, 2024, 06:42:05 AM »
I'm not, but many (most?) states allow a credit for taxes paid to another state on income that's also taxed by the residence state, so there's a good chance that at worst you would end up paying tax equal to what you would owe in NY or what you would owe in your residence state, whichever is higher.

doneby35

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Re: NY convenience of employer law
« Reply #2 on: June 07, 2024, 07:50:02 AM »
I'm not, but many (most?) states allow a credit for taxes paid to another state on income that's also taxed by the residence state, so there's a good chance that at worst you would end up paying tax equal to what you would owe in NY or what you would owe in your residence state, whichever is higher.

Thanks. I was trying to figure out which states do not allow a credit, but I canít seem to get the results Iím searching for.
In the case of filing taxes, would you then need to file 1) NY non-resident and 2) resident in state you live in, and then select some form or option that allows the credit?

terran

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Re: NY convenience of employer law
« Reply #3 on: June 07, 2024, 01:59:39 PM »
Yes, that's been my experience, but only with being a part year resident with some overlapping income (one state said income earned in the state was taxable, the other said income received in the state was taxable, so I got a credit in the new resident state for the tax paid on the overlapping income). If you want to post or DM me what the resident state is I can take a look and see what I can find.

doneby35

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Re: NY convenience of employer law
« Reply #4 on: June 07, 2024, 05:16:56 PM »
Yes, that's been my experience, but only with being a part year resident with some overlapping income (one state said income earned in the state was taxable, the other said income received in the state was taxable, so I got a credit in the new resident state for the tax paid on the overlapping income). If you want to post or DM me what the resident state is I can take a look and see what I can find.

Sent you a DM.