NY and some other states apparently demand income tax payment from fully remote workers if the company’s office is in that state.
I took a fully remote job with a non-profit in NY on 1/2/2021. I live and work in CO. Looks like I might have to hire a CPA for the first time ever. I’m definitely contacting my Congress-people.
I'm curious, are you double-taxed by both NY State and Colorado State income taxes? I'm not a lawyer but I imagine this raises compelling questions about the power of one US State over the resident of a different State. Supreme Court worthy, perhaps?
That’s why I’ll have to hire a CPA. It wasn’t totally clear to me from that article if it’s double taxation or if NY is just trying to claim taxes I would otherwise owe to CO. And you’re basically under threat of an apparently extra painful audit from NY.
My tax attorney said that California does this as well. I am moving to a state with no state income tax, but California apparently will push for me to pay their tax since our corporate HQ is in California, even though we have offices in other states and countries. Our employees in those other states don't pay California taxes. The situation can get really muddy apparently.
I've heard the CA Franchise Tax Board is ruthless. Worse than the IRS because the CA people don't have to answer to your congressperson but the IRS does.
This is news to me. Is it because you're in California currently? I just got hired by a California based company but I'm from Washington, I'll be remote and if I ever go to the office it will be in Washington.
Of course they would attempt this - NY is the state with the highest overall tax burden (https://wallethub.com/edu/states-with-highest-lowest-tax-bur...). The status quo is that all the big tax states regularly increase taxes and find creative ways to grift off others' private activities. A recent example is Washington state's Democratic party trying to pass a state-level capital gains tax (https://www.washingtonpolicy.org/publications/detail/sb-5096...) even though it is explicitly illegal per the state's own constitution. Pushing the boundaries of what is legal or ethical when it comes to taxation is the norm not the exception.
With the recent exodus in California, and the advent of remote work/decentralized economies brought on by the pandemic, I imagine all states with large tax burdens are going to try to get creative in this regard. Personally, I look forward to economic decentralization starving these bloated institutions, which hopefully will also reduce the extent to which they interfere and control our lives as individuals and private organizations. It starts with reducing the size of their giant coffers.
if you're uncomfortable with that wait until you hear that a US citizen born in a foreign country, citizen of a foreign country, living in a foreign country, working in a foreign country for a foreign company, still has to file US taxes and in many cases even has to pay US taxes.
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[ 5.0 ms ] story [ 37.4 ms ] threadI took a fully remote job with a non-profit in NY on 1/2/2021. I live and work in CO. Looks like I might have to hire a CPA for the first time ever. I’m definitely contacting my Congress-people.
With the recent exodus in California, and the advent of remote work/decentralized economies brought on by the pandemic, I imagine all states with large tax burdens are going to try to get creative in this regard. Personally, I look forward to economic decentralization starving these bloated institutions, which hopefully will also reduce the extent to which they interfere and control our lives as individuals and private organizations. It starts with reducing the size of their giant coffers.