New York Tax Collectors Telecommuting To Tennesee
from the the-tax-man-is-a-coming-for-ya dept
As telecommuting becomes a more viable option for the modern day worker (some are even saying that telecommuting is necessary for national security), who better to put a speed bump on the road to progress than the state tax system? Today, the New York Court of Appeals ruled that an out-of-state telecommuter is liable for a full year's worth of New York state income tax. The court's argument is that the state of New York provided the opportunity for the job, and therefore, should be able to tax the full amount of that person's income. Luckily for the telecommuter in question, he resides in Tennessee, which does not have state income tax, so he's not being double taxed. Numerous telecommuters now face that daunting possibility. The court's myopic decision today could end up backfiring -- telecommuters will now be less willing to work for New York companies. Sounds like a case of "taxation without representation", and we all remember what happened the last time that happened.
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The Vassal States of America
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Nothing new here
This city tax is in addition to having to file Kansas and Missouri tax returns. Generally I get everything back I pay Missouri since I live and pay taxes in Kansas, but I have no representation or recourse afforded me by the taxes I pay the city. It's a flat tax they just take out of my check, and there's no exemptions. So, I pay as much in taxes in Kansas City, MO as I do in property taxes in the town I live in, but I still can't vote in KC's local elections.
- Freed
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So what exactly IS: telecommuting?
To put it more simply, if this judgment is correct, how does one determine which employees of a NY company do not have to pay NY taxes? How "out of state" do they have to be, to be exempt?
Worse, suppose I telecommute for a national company. I have no office of my own, but I do transactions with their remote computers in five states. Do I pay taxes to all five states?
- Precision Blogger
http://precision-blogging.blogspot.com
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So let's try this
It does have to work both ways doesn't it?
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