Posted on 05/31/2006 6:12:02 AM PDT by Brilliant
New York may be ceding some ground in its long-running tussle with telecommuters -- a struggle that could affect how other states treat workers who live outside their boundaries.
The issue affects employees who live in another state, work at home for a New York employer, are assigned to the employer's New York office and come to New York to work some of the time. The question: Do these employees owe New York taxes on all their income from the New York job, or only on their income from work actually done in New York?
New York's tax department has long said that all of a nonresident employee's income from work done at home in another state is taxable by New York -- unless it's done for the employer's "necessity," not the employee's convenience. Only a few other states, including Nebraska and Pennsylvania, have similar rules, but New York is believed to be the only state that has vigorously enforced this "convenience" test.
According to a new memorandum, when an employee lives in another state and is assigned to the employer's New York office, the days the person works at home won't be counted as New York days if the home office is a "bona fide employer office," a spokesman says.
New York's change comes after it won high-profile legal battles in recent years that telecommuter groups feared would ultimately lead to higher income-tax bills for many telecommuters around the nation.
New York made the change to reflect the changing dynamics of business and the workplace, especially the rapid growth of telecommuting, said Andrew S. Eristoff, the state's tax commissioner. The new stance also is designed to "address some of the more extreme examples" involving telecommuters that have arisen over the years, he said...
(Excerpt) Read more at online.wsj.com ...
Sounds like bloomy is at it again....every cent he can squeeze from somewhere he will....
Wonder if the people in N.Y. think that this will lower their taxes???? I hope they aren't that blind....
My brother-in-law used to work in New York and during that time ny even taxed my sister's income even though she worked in NJ. What a bunch of thieves.
If a person with an income of $250,000 has a spouse who earns $10,000 and they file a joint return, the spouse's income is taxed at the very high rate for a married couple with a combined income of $260,000.
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