Telecommuting May Have Just Become A Lot More Expensive
from the uh-oh dept
Just as it looked like people were finally getting to be okay with telecommuting, the Supreme Court makes the whole process more expensive. Earlier this year we wrote about a programmer who was telecommuting from Tennessee to work for a company based in New York. He paid New York taxes on the portion of his income based on the time that he actually spent in New York, but the state decided that he needed to pay New York state taxes on his entire salary, saying that New York gave him the opportunity for the job, and basically, he owed them for it. While he lucked out because Tennessee has no income tax to add on top of that, telecommuters in other states wouldn't be so lucky -- and might have to pay state taxes in multiple states on their entire salaries. The original telecommuter appealed all the way up to the Supreme Court, but the Court has decided not to hear the case -- meaning states are now free to start taxing out-of-state telecommuters on their entire salaries.
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Per Diem
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Non-resident state tax
Example: I live in NJ but work in NY. I pay tax to NY on my NY-sourced income (though not on my wife's NJ-sourced income or our interest/dividends, etc). On our NJ resident income tax, we get a credit for most of the taxes paid to NY against our NJ tax.
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Good ol' SCOTUS
Hey, everyone, get the feeling this country isn't yours anymore, if it ever was?
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Re: No Subject Given
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Will they send me another bill 5 years later?
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why telecomute anywhere in particular
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Re: Good ol' SCOTUS
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Perhaps any/all of my knowledge workers who live in states that have income tax are really telecommuting to states that don't when they work every day. Wow, no taxable salary!!
And SCOTUS won't here the case...! Bingo, we win!
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Re: Non-resident state tax
My question is as follows:
I live in NYC, and I work in NJ.
I pay NJ taxes, which are automatically taken away from my paycheck.
Do I have to pay NY taxes as well?!?
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