Let say my salary is $150,000
Scenario 1: I live in NY but I my remote work is in Seattle, Washington.
Scenario 2: I live in NY AND my work is in NY
Which scenario would i be paying less income tax on? Which scenario would let me keep the most money
Let say my salary is $150,000
Scenario 1: I live in NY but I my remote work is in Seattle, Washington.
Scenario 2: I live in NY AND my work is in NY
Which scenario would i be paying less income tax on? Which scenario would let me keep the most money
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You file 2 one as a nonresident for WA and one as a resident of NY
But WA is a state that doesn’t charge income tax. Why not ask a tax professional so you don’t get issues with IRS or the states FTB.
There is no state income tax in WA. One of the many reasons we’re better than NY.
Interesting concept. I’m not sure if the tax code covers remote work yet… I would assume NYC would be tax home so any income you earn would need to be filed under NY unless you have residence in WA and since you don’t travel but always contact a CPA
If you live in NY, you will pay income tax on all income, regardless of where that income is earned. You are then credited any amount paid to another state as income tax. Since WA has no income tax, the credit is zero. Therefore you will be paying the same amount in both of your scenarios.
Your work is wherever you physically are when you’re doing it. If you’re in New York, and you’re working, then you’re working in New York.
I assume in Scenario 1, you aren’t literally commuting to Seattle to work remotely, your company just happens to have a building there. That means nothing. McDonalds employees in New York don’t pay Illinois state tax just because McDonalds’ headquarters are in Chicago.
You end up with the same amount in both scenarios because you’re paying NY income tax in both. If you were a WA resident then it would be different but you are not. You need to pay income tax in New York. Def consult a cpa/tax consultant tho
Good luck! 🙂
Better question. What if you live in WA but work in NY? Do you not pay NY state/city taxes?
You pay and file income taxes in the state you reside in. It doesn’t matter if the company you work for is in Seattle or China.
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