Working From Home? The New York State Taxman Doesn’t Care
What to do if auditors chase you down (and they absolutely will) for claiming that you don’t owe taxes on income earned while living elsewhere during the pandemic.
A house is not a tax domicile.
Photographer: Kena Betancur/AFP via Getty ImagesMore than 100,000 people who used to work or live in New York State have received notices from the tax department questioning them about their whereabouts last year and asking why they paid less to the state than they have in years past. Additional notices are likely to be sent once high earners, many of whom routinely ask for filing extensions, submit their 2020 returns in October.
New York, famed for its aggressive tax policies, is targeting those who were employed by companies based in the state but worked remotely during the pandemic. According to the state, nonresidents who telecommuted are still on the hook for New York state income taxes even if New York offices were closed due to Covid-19.