Comment this is not new (Score 2, Informative) 810
This is pretty par for the course in New York state.
This year, I had the fun experience of doing my taxes as a part-time New York resident, and half of my income was foreign-earned and tax-exempt for that time. In order to not pay New York state income tax on the part that was foreign-earned and federally-exempt because I was physically not in the country, I had to demonstrate that I had only been a part-time tax resident of New York.
The thing about tax residency is that it's separate from voting residency, and one of the criteria for being a "New York tax resident" is "income is derived from a New York source." I forget the exact wording on the tax forms, but basically, if I had lived in Pennsylvania full-time but my work was at a New York company, I'd have to pay New York tax on it.
I also got screwed once when I moved away to Pennsylvania for college and didn't realize all of this crap about tax residency, and the fact that New York will continue to try to collect taxes on all your income until you are cold in your grave if you've ever been a resident. I'd worked part of the year in New York, moved to PA, and worked there in college, and ended up having to pay New York income taxes on my Pennsylvania income. Why? Because I didn't know to file my taxes as a "part of the year" resident. In the following years I remembered to file my forms as a "Pennsylvania tax resident" despite still having my pernament residency in New York.
This worked because 1) I was not physically present in New York *AND* 2) my income wasn't derived from New York sources.
The thing is, this doens't surprise me at all because the working of "derived from NY sources" is certainly vague enough to include "telecommuting to a New York company." I don't think it includes, as one other poster was raving about, "if you work in another state at the office of a company that ALSO has an office in New York you will get hit with New York taxes."
In short my state goverment is a bunch of thieving bastards. (can i also be bitter that they take this income tax and then spend it all on new york city? bastards. *shakes fist at gaping pot holes in road*)
This year, I had the fun experience of doing my taxes as a part-time New York resident, and half of my income was foreign-earned and tax-exempt for that time. In order to not pay New York state income tax on the part that was foreign-earned and federally-exempt because I was physically not in the country, I had to demonstrate that I had only been a part-time tax resident of New York.
The thing about tax residency is that it's separate from voting residency, and one of the criteria for being a "New York tax resident" is "income is derived from a New York source." I forget the exact wording on the tax forms, but basically, if I had lived in Pennsylvania full-time but my work was at a New York company, I'd have to pay New York tax on it.
I also got screwed once when I moved away to Pennsylvania for college and didn't realize all of this crap about tax residency, and the fact that New York will continue to try to collect taxes on all your income until you are cold in your grave if you've ever been a resident. I'd worked part of the year in New York, moved to PA, and worked there in college, and ended up having to pay New York income taxes on my Pennsylvania income. Why? Because I didn't know to file my taxes as a "part of the year" resident. In the following years I remembered to file my forms as a "Pennsylvania tax resident" despite still having my pernament residency in New York.
This worked because 1) I was not physically present in New York *AND* 2) my income wasn't derived from New York sources.
The thing is, this doens't surprise me at all because the working of "derived from NY sources" is certainly vague enough to include "telecommuting to a New York company." I don't think it includes, as one other poster was raving about, "if you work in another state at the office of a company that ALSO has an office in New York you will get hit with New York taxes."
In short my state goverment is a bunch of thieving bastards. (can i also be bitter that they take this income tax and then spend it all on new york city? bastards. *shakes fist at gaping pot holes in road*)
