I live in PA and also I am based out of the PA office. But I am assigned on a project since the beginning of the year in NY. I commute every Monday and go back to PA on Friday. The company pays for my hotels and expenses.

My compnay is deducting PA and NY taxes. I just don't understadn why am I paying NY taxes when its an assignment but not a transfer of location. I am still based out of PA.

Any help would be appreciated.

Thanks,
-Muneeb

Muneeb:

It has long been established that states can tax income earned within their state borders.

PA should give you a credit for the NY taxes paid so you are not double-taxed.