After a year of New York taxpayers having to deal with COVID-19 and getting some additional time to file, income tax returns for the year 2020 (not on extension) are being reviewed. Upon reviewing tax returns, the New York State Department of Taxation & Finance (Department) has sent notices to nonresidents who usually work from the NY office of their employers and who allocated income to the location where they worked remotely (outside NY) during the past year, asking them about the allocation of wages subject to New York personal income tax. The inquiries are based upon the Department’s position that compensation for employees who regularly work at the New York office of their employer is subject to NY income tax and is New York source income as provided in the “Convenience of the Employer Test.”
Telecommuters Assigned to the NY Location of Their Employer but Working Outside NY Due to the Pandemic May Be Taxed Twice
