Double taxation between CA and NY?

Forum|Forum|2 years ago
February 22, 2024
1 reply
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In 2023, I joined a company based out of New York. However, I am a permanent resident of California and performed 100% of my work for said company within California. On my W-2, my employer withheld taxes for both states.

In the wizard for NY, what should my answer be for the screen below?

Additionally, is New York's "convenience rule" still applicable even though I worked entirely remotely? Finally, am I subject to double taxation for both New York and California?

Thanks in advance!

LindaS5247

Yes, it is all considered as earned in New York. If you worked remotely for a company based in New York, then that income is subject to tax in New York. New York does apply the "Convenience Rule" in that it considers your income earned by your company based in New York, to be New York sourced Income.

You will file a Nonresident State Tax Return for New York and a Residential State Tax Return for California. Prepare your New York State Tax Return first. Then prepare your California State tax Return. This information will allow TurboTax to calculate how much credit California will give you for your taxes paid to New York.

Click here for information on filing tax returns for more than one state.

Click here for more information on multiple state returns.

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jclizzyAuthor

Thank you for the clarification! Just one more question: will California actually give me credits for paying NY tax? There's conflicting information all over the internet, where some are claiming CA will, while others claim it won't b/c it explicitly opposes NY's "convenience" policy.