Question

Convenience of the Employer Rule for New York

Forum|Forum|4 years ago
April 7, 2022
1 reply
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Hello,

So last year, I recently got a job for a company in NY while living in NJ. I had originally filled in my tax forms for NY and NJ and since the beginning, I’ve been paying NY tax. About halfway thru the year, they advised that our office was still going to be closed and we would continue to work remote. By the next pay period, I was now being taxed for NJ (no longer NY) with a note that says “Your State Tax Jurisdiction has Changed”

Im filing my tax return and now owe a ton of NY tax. Is there some exemption I can file for or did my employer make a mistake of not taxing me NY tax? I looked at my tax forms and no longer see an option for NY.

Appreciate the help!

E

ErnieS0

If your office was closed, and your company began withholding New Jersey tax, then you are no longer subject to the convenience of the employer rule for those days because you no longer have a New York office to work from.

New York requires employers to report total wages in W-2 Box 16 even if earned outside NY.

You can split the wages in the New York section of TurboTax to show what was earned in NY.

NY and NJ tax wages differently, so you probably won’t be able to subtract NJ wages from NY (NY W2- NJ W2) to come up with the right amount. Check your pay stubs to get a percentage. Or you can allocate by days worked while the office was open.

On New York Income Allocation, say No to Were all of your wages and/or your self-employment income earned in New York State?
Edit Your W-2 on Your Form W-2 Summary
Choose Allocate by Number or Days or Allocate by Percentage on Allocate Wages to New York (percentage is usually the easier calculation)

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