NY state tax for nonresident

Forum|Forum|2 years ago
February 26, 2024
2 replies
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I'm a MD resident work remotely for a company in New York city. part of my tax is witheld for NY state.

Where and how in TurboTax shall I file so that I won't pay more than the higher rate if the two state ?

DaveF1006

You would prepare your NYS non-resident return before preparing a Maryland resident return. When you prepare your your NYS, there is an income allocation screen where you can allocate your NYS income by the number of days you actually spent in NYS for business purposes related to your employment.

Once the NYS return is paid, you are given credit for New York tax paid on your Maryland return. Be sure to prepare your NYS non-resident return first.

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martingale22Author

that's right. I'm doing my NYS return first.

i test different allocate % in 'Allocate wages to New York' portion of the NYS and if I allocate 0% to NY, my MD tax jump up by same amount of NY refund.

so seems my net state tax won't be affected by the % allocated to NY, just how much each state should be allocated.

don't want to be wrong and end up audited by NY tax .

TomD8

Employee

As per the New York Statute that I cited in my previous post:"

"Compensation for personal services rendered by a nonresident individual wholly without New York State is not included in his New York adjusted gross income..."

In other words, if you never physically worked within New York State, not even for a single day, then your proper NY allocation for that work income should be 0%.

Of course no one here (or anywhere else) can guarantee that your tax return won't be audited.

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

TomD8

Employee

Note that, per New York tax law, NY can only tax the portion of your income that you earned from work physically carried out within New York State. Here's a link to the relevant New York Statute:

https://www.law.cornell.edu/regulations/new-york/20-NYCRR-132.4#:~:text=Compensation%20for%20personal%20services%20rendered,resident%20individual%2C%20partnership%20or%20corporation.

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