State taxes NY and CA - Remote Work

Forum|Forum|2 years ago
March 29, 2024
1 reply
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During COVID I moved from NYC to Los Angeles. Since then I have worked from home for the same NYC based employer. Each year I receive my W2 which states my wages (e.g. Fed $100 / NY $100 / CA $100). I file my federal return, then I file a non-resident NY return and finally I file my CA return, claiming NY taxes paid as a credit to my CA taxes).

During 2023 my employer tells me they set me up as a remote worker in CA, back dated to 01/01/2023. As such my W2 wages now appear differently (e.g. Fed $100 / NY $0 / CA $100) but also includes taxes paid to NY prior to this change.

How should I file my files in 2023?

Should I claim back the NY taxes and only pay tax in CA or should I file as per previous years, ignoring the fact that the W2 now shows NY wages as zero?

Additional facts:

My employer does not have any offices in California

My employer uses a 3rd party payroll service which issues the W2, which is based in California

My circumstances have not changed since I moved to Los Angeles in 2020.

Vanessa A

It sounds like you were at the beginning subject to the Convenience of the Employer Rule but for some reason, your employer has determined you are no longer working in CA for your own convenience but for theirs.

If so, then you will still file all 3 returns like you have in the past, but this time on your NY non-resident return, you will list NY wages as $0 so you can get your withholdings refunded to you.

So in the end, you will pay taxes to CA and get a full refund from NY.

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