Telecommuting: New York Brings The Taxes Home

What was once cutting edge is now routine, and an increase in remote working and telecommuting is probably here to stay. For those workers who live in another state and commute to New York, or those who have moved – or plan to move – out of New York, the question posed to the tax professional is:  am I obligated to pay tax to New York when I’m hardly ever there?

The New York telecommuting rule is more restrictive and more complicated. New York evaluates whether the nonresident employee working at home is doing so for convenience or from necessity. In applying the convenience/necessity test, the State considers whether the employer has established a bona fide employer office at the nonresident’s telecommuting location. If not, then in general, the income is considered New York source income.