I am a full time NY employee paid on an hourly basis and live in NJ. Based on how I have read the NY tax publication for IT-203-B, I can still allocate the salary such that I exclude weekends, vacation days, holidays and sick days. However, it seems that this strategy goes around the "spirit" of the wage allocation. My wife's case would be even more extreme as she works only 1 day per week from home for a NY based business. Would it be incorrect and dishonest for me to allocate these wages on a daily basis according to the rules as they exist or is the system set up to allow for the fact that some people are on salary and others are paid hourly?

Thank you for any input.

AtlantaTaxExpert

You can allocate the salary based on the amount worked per state as long as you do it consistently for BOTH of you.