Question

Resident of NY, company in NJ, worked from home 100% last year due to Covid

Forum|Forum|4 years ago
March 19, 2022
1 reply
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Hi,

Not sure if there is anything I need to do differently here, I live in NY but would have commuted to NJ on normal circumstances. Due to Covid I WFH 100% of the time. W2 was issued from a company with a NJ address.

Don't think TurboTax software cared for this, perhaps because it doesn't matter, should I report any NJ income or even need to file a NJ return?

M

MAK70

Generally, your employer withholds for the state where you perform the work , but there were special Covid rules that applied in some cases (and these were applied according to whether you were a resident or nonresident.)

For New Jersey, the temporary relief period with regard to employer withholding tax for teleworking employees ended on October 1, 2021. Employers stopped sourcing income in accordance with the employer’s jurisdiction. As required under the long-standing pre-pandemic rules, beginning on and after October 1, 2021, employers should resume sourcing income based on where the service or employment is performed and withhold New Jersey Gross Income Tax from such wages.

In your specific situation, because you were a New York resident and worked in New York, you would not have to file a New Jersey tax return for 2021 if your employer did not withhold New Jersey taxes (Boxes 15-16-17).