Tax Tip #155

Do you live in NJ & work from home for a NY employer?

Do you live in NY & work form home for a NJ employer?

If you are in one of these situations, do you know which state is permitted to tax your income?

Perhaps both, but that would not be fair, would it?

Perhaps you have heard of this - who said taxes are fair?

NY has what is known as the “convenience of the employer” rule which NJ has now imple-mented. The NY rule states that a nonresident (NJ) needs to be working from home out of necessity rather than convenience in order to be subject to NJ tax rather than NY tax.

NJ’s Law which mirrors the NY law is retroactive to 1/1/2023. If you believe you are in one of these situations and are not sure if you are paying taxes to the proper state and want to be proactive before NY or NJ sends that dreaded notice, then feel free to reach out to a team member.