I work for a company that is based in NY however I live and work from VA. My company has begun taking out NY taxes but not VA. Is this right and which state will I owe?

Forum|Forum|1 year ago
January 6, 2025
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Best answer by TomD8

If you will never physically perform any work within New York State, not even for a single day, then you will have no income tax obligation to the state of New York. If that's your situation, your employer should not withhold NY income tax from your pay. Submit NY Form IT-2104.1 to your New York employer. Here's a link:

https://www.tax.ny.gov/pdf/current_forms/it/it2104_1_fill_in.pdf

Your income ius 100% taxable by your resident state of Virginia. If your employer does not withhold Virginia income tax from your pay, then you must make quarterly estimated tax payments to Virginia. See this for details:

https://www.tax.virginia.gov/individual-estimated-tax-payments

ParkNYC

You might have to file a nonresident NY income tax and your VA tax. You should be able to get credit for taxes paid to NYS on your VA resident tax.

TomD8Answer

Employee

https://www.tax.ny.gov/pdf/current_forms/it/it2104_1_fill_in.pdf

https://www.tax.virginia.gov/individual-estimated-tax-payments

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Opus 17

Employee

You owe income tax to VA because that is where you live (on a Resident return). If you never set foot in NY, you do not owe NY tax. You will have to file a non-resident return, report zero taxable income, and claim a full refund. Expect NY to ask some questions. (And get your company to change your withholding.)

If you spend even one day of the year in NY, both states tax your income. NY taxes only your wages from the NY company (on a non-resident return) and VA taxes all your world-wide income (wages, plus investments, pension, or whatever else). VA will give you a partial credit for tax you paid to NY on the work income.

ParkNYC

@Opus 17

My wife lives and works remotely in NJ, we've been asking her company to stop withdrawing NYS taxes because we live and work in NJ , they refused. They said the company has an office in NYC and that office address is on her contract. She never went to that office and we also filed IT-2104.1 form. They still charge her NY tax. I guess it doesn't matter for NYS tax department where you live, as long as you work for a company with a NYC office they'll charge you NY taxes and force you to file a nonresident IT-203 form.

Opus 17

Employee

@ParkNYC wrote:

@Opus 17

My wife lives and works remotely in NJ, we've been asking her company to stop withdrawing NYS taxes because we live and work in NJ , they refused. They said the company has an office in NYC and that office address is on her contract. She never went to that office and we also filed IT-2104.1 form. They still charge her NY tax. I guess it doesn't matter for NYS tax department where you live, as long as you work for a company with a NYC office they'll charge you NY taxes and force you to file a nonresident IT-203 form.

That's not the NY tax department, that's on the employer for refusing to follow your wife's instructions. They may be under pressure to withhold from out of state employees, but it is ultimately up to the company to fight or fold.

As long as your wife does not work even one day in New York (such as for a mandatory training session, or mandatory meeting once a month, or something like that) she is not subject to NYS tax, and if the company won't honor her request, then she just has to keep filing the non-resident return to get a refund. She should also be making estimated payments to New Jersey, which is unfortunately going to take a temporary bite out of your finances until you get that NYS refund. Of course, if she does work even one day physically in NYS, she is subject to NYS tax on her full year of income.