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Taxes owed on company based outside NY, office in NY

Asked Feb 5, 2006, 08:21 PM — 1 Answer
My employer is based out of Phoenix, at least their W2 states this, and my office is in New York City. Last year I moved to NJ and the payroll department started withholding NJ taxes. I work virtually but several times a month would go into the office in NYC. A few questions:

1) Is my income from a NY Source because there is an office in NYC even though the company is 'based' out of AZ?
2) I'm assuming that when filing my NJ taxes I claim the income received once I moved to NJ, however, do I then also have to identify the same income in my NY tax form
3) If as I suspect, I now have a huge NY tax bill, should I ask my employer to stop withholding NJ tax and sole withhold NY even if I don't work there every day?

Thanks for your help!

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AtlantaTaxExpert Posts: 19,862, Reputation: 3723
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#2

Feb 6, 2006, 09:06 AM


Pparedes:

1) in my opinion, since your office is based in NYC, the state of NY will take the position that you work in NYC, even though you do your work on a virtual basis.

2) NY will tax the income earned in NY for the entire year. NJ will tax the income earned in NY while you lived in NJ, and give you a credit for the taxes paid to NY.

3) Yes, have only NY taxes withheld. Since NY tax rates are higher, the credit NJ gives for taxes paid to NY will always reduce your NJ tax bill to zero.
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