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NY employee resides in NJ worked from home for 2020

gabjo00
Level 3

Are you allocating income for the days worked at home for COVID for clients working in NY but living in NJ?

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gabjo00
Level 3

Found some guidance on the subject, NY will not accept working from home for covid as a "necessity".  They want there taxes.  Posting this in case anyone else has the same question.

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Accountant-Man
Level 12

You have to check NYS rulings in this. Like many states, NY doesn't want to give up the income.

Was the home office usage mandatory or optional? If optional, the employee can't get out of paying NYS tax.

** I'm still a champion... of the world! Even without The Lounge.
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gabjo00
Level 3

It would have been mandatory because offices were closed for Covid

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gabjo00
Level 3

Found some guidance on the subject, NY will not accept working from home for covid as a "necessity".  They want there taxes.  Posting this in case anyone else has the same question.

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tonycpa_NJ
Level 1

TSB-M-06(5)I
Income Tax
May 15, 2006    is not that clear but NY is:  https://www.tax.ny.gov/pit/file/nonresident-faqs.htm#telecommuting

My primary office is inside New York State, but I am telecommuting from outside of the state due to the COVID-19 pandemic. Do I owe New York taxes on the income I earn while telecommuting?
If you are a nonresident whose primary office is in New York State, your days telecommuting during the pandemic are considered days worked in the state unless your employer has established a bona fide employer office at your telecommuting location.

There are a number of factors that determine whether your employer has established a bona fide employer office at your telecommuting location. In general, unless your employer specifically acted to establish a bona fide employer office at your telecommuting location, you will continue to owe New York State income tax on income earned while telecommuting.

 

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