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View Full Version : All consultant works are done in New York and gets pay from a company in California.


tyuen30
Feb 10, 2013, 04:29 PM
Consultant works are done at home in New York and gets pay by company in California. Do I have to pay state tax to both New York and California?

JudyKayTee
Feb 10, 2013, 06:18 PM
You pay in the State where you have your main address/residence.

AtlantaTaxExpert
Feb 10, 2013, 07:10 PM
Actually, it is where you WWORK and where you live.

In your case, you pay ONLY New York state income taxes.

JudyKayTee
Feb 10, 2013, 07:56 PM
Could you explain this a little bit? I actually work in three States, two Countries - pay income tax only in my State of residence, NY.

AtlantaTaxExpert
Feb 10, 2013, 08:46 PM
Then you should be paying taxes to the two states where you performed work, while claiming a tax credit for those state taxes paid on your NY state return using Form IT-112-R. Most states waive the tax requirement if the money earned is negligible.

If the other country is Canada, NY also allows a credit for taxes paid to Canada using Form IT-112-C.

There is no requirement to pay taxes to Canada if the money earned is less than $10,000, per IRS Pub 597.

JudyKayTee
Feb 11, 2013, 06:54 AM
Thank you again for helping me with a tax question. I use a CPA and this is the second time you've caught something that he missed.

I am truly grateful - and I appreciate the time and effort you take on AMHD.

AtlantaTaxExpert
Feb 11, 2013, 08:52 AM
Glad to help!