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    tyuen30's Avatar
    tyuen30 Posts: 1, Reputation: 1
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    #1

    Feb 10, 2013, 04:29 PM
    All consultant works are done in New York and gets pay from a company in California.
    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's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #2

    Feb 10, 2013, 06:18 PM
    You pay in the State where you have your main address/residence.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    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's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #4

    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's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    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's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #6

    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's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #7

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