NY resident work remote for PA employer - State Tax?

Forum|Forum|3 years ago
August 24, 2022
1 reply
19 views

Hi all

I am a resident of NY state and I was recently hired by a company based in PA. So to be clear, I did NOT move from PA to NY.

In my first paycheck, I saw that they retained both NY and PA state taxes, and I'm trying to figure out what I can do about the double taxation since it is a hit on my pay.

The PA revenue official site (https://www.revenue.pa.gov/COVID19/Telework/Pages/default.aspx) states:
A non-resident employee who is required to telework full-time from home in another state should treat his compensation as non-Pennsylvania source income even if his employer is located in Pennsylvania. In those situations, the employer is not required to withhold on the employee’s compensation.

Now, it seems to be that I should be able not to pay PA state taxes, or at least I should be able to get them refunded?

What do the experts here think?

Thank you

Not A Product Question

Bsch4477

Employee

The guidance you cited doesn’t apply in 2022.

From the same site:

The Department of Revenue previously issued temporary guidance relating to telework and related tax implications during the COVID-19 pandemic: Telework During the COVID-19 Pandemic

This prior guidance linked above is effective until June 30, 2021 (“End Date”). As of the “End Date” the temporary guidance will no longer be applicable and existing tax law will govern.

SebBAuthor

Ok…so what’s the existing tax law for 2022?

Bsch4477

Employee

You complete 3 returns. First complete your federal and then a non resident PA return and lastly a resident NY return. NY will give you a credit for your PA tax so you won’t be double taxed.