Question

Remote worker in New York for Kentucky business

Forum|Forum|4 years ago
April 1, 2022
1 reply
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I lived in NY the full year and did some online work remotely through a W2 for a business in Kentucky. I never went to Kentucky to perform this work, on my W2 they withheld Kentucky income taxes. Would I be taxed on this income by both New York and Kentucky? If not, would I exclude this income on my NY return, or claim a refund for the withholdings on a Kentucky return? If filing a Kentucky return to refund those withholdings, how would I file this?

LenaH

As a resident of New York, all of your income (no matter where it is earned) is subject to tax in New York.

Since you worked remotely from New York and never physically earned money in Kentucky, then you have zero sourced income for the state of Kentucky. However, because Kentucky income taxes were withheld, you have to file a nonresident Kentucky return to get a refund of taxes paid.

As you complete your nonresident Kentucky return, you will come to screens titled Kentucky Portion of Income. Enter 0 for every box since no amount of income was earned in Kentucky. By entering zero sourced income for Kentucky, you will get a refund of taxes paid from the state. Please see the screenshot below for additional guidance.