Anyone work remotely? Question for you.

[jgustav]

Originally Posted by ringler24

I've always worked remotely in my position. I think I'll have to file a NY state non-resident and AZ resident.

It looks like if none of the exceptions in the link that was provided apply to you, you will need to pay NY state tax on the NY remote position. You should get an AZ other state tax credit - form 309 - for paying NY state tax which will likely bring your AZ state tax to zero since the NY tax rate is so much higher than AZ. Not a bad idea to have a CPA or EA look at it unless you are comfortable with filing multiple state returns.

[yukon]

We have a client in NM who has multiple out of state W2 employees. They collect withholding tax at the employee's home state rate, remit it to that state, and the employee files a personal income tax for that state only. The employees do not file a NM return. NM, like AZ, taxes income from out of state sources but in these cases, there is no tax due to NM. Seems to me if you really are remote, you'd only be liable for taxes to the state in which you reside.

[jgustav]

Originally Posted by yukon

We have a client in NM who has multiple out of state W2 employees. They collect withholding tax at the employee's home state rate, remit it to that state, and the employee files a personal income tax for that state only. The employees do not file a NM return. NM, like AZ, taxes income from out of state sources but in these cases, there is no tax due to NM. Seems to me if you really are remote, you'd only be liable for taxes to the state in which you reside.

This works for a NM employer but it is taxed differently for a NY employer.

CONVENIENCE VS. NECESSITY
In New York, Pennsylvania, Delaware, New Jersey and Nebraska, however, all wages earned from an employer in any of those states are allocated to that state unless by necessity the nonresident’s work must be performed from his or her out-of-state location. This rule has been enforced by the taxing authority in New York, legally challenged and upheld.

[smoochaz]

My husband works for a NJ company and we only pay AZ taxes no NJ - we pay where we reside according to our cpa.

[wannabeaTexan]

I’d consult with a CPA from each state if I were you, OP. I work remotely, but my employer’s state doesn’t have state income tax, so it won’t be that complicated.