BB asking me for my WFH location; if I live in a different state and WFH, will I be taxed by that state's tax?

I moved back to my parents' house and am working from home there and my BB asked me to update them on which state I am working in. I have heard rumors in my group that I will be taxed according to the state I am in rather than my home office.

Is this happening to other people? Can someone explain this?

Comments (29)

May 12, 2020

yes, so get a post office box address in florida or texas

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May 12, 2020

IRS has entered the chat

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May 12, 2020

the IRS doesn't care what state you live in....NY State might care if you leave....but not like California.

Its worth it to get an address in a no-tax state like Florida. Florida is cheap to get an address (and then have your mail forwarded to anywhere).

May 12, 2020

My bank also asked for mine but I haven't crossed state lines so not a big deal. With that said... If you're usually in NYC and now you're, well anywhere else, you're probably in pretty good shape

I wouldn't recommend lying... Doesn't seem like it's worthwhile. Most of my friends from NYC are back with their parents in suburbia.

If you're really worried about it, just give your CPA a call

May 12, 2020

Those rumors are false. You'll have to pay NYC Tax, unfortunately. My firm is making a big deal about WFH outside NYC, especially if you want to WFH internationally.

Don't lie because they can easily verify your location by checking where you're logged in from.

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May 12, 2020

If I don't even get a benefit out of it, then why would I lie about where I'm located? I already told them I am outside NYC.

Wait, so there is no real benefit at all if we are working from outside the home office?

I think you know what I am doing.

May 12, 2020

you will be taxed by the state where you work. ideally, that is a state with no income tax

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May 13, 2020

In case you get the idea that you can get some sort of benefit about lying about your location.

There is no tax benefit. You're going to be paying NYC taxes regardless of where you are.

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May 13, 2020

This is false, and a shame considering your username- each person pays tax according to their permanent place of residence (if someone lives in NJ but works in NYC- they pay NJ taxes ONLY)- likewise if someone lives on long island for example- they pay NY tax but not NYC tax.

May 13, 2020

that NJ/NYC tax is from tax sharing agreements between NJ and surrounding states

  • Intern in IB - Ind
May 13, 2020

Currently an incoming analyst, staying at my parents house abroad, do you know if banks will force those abroad to come back to the NYC once training starts due to tax reasons?

May 14, 2020

They won't force you for tax reasons; you'll pay an NYC tax regardless of where you are in the world. Whether or not your country will charge you even more taxes on that income is up to your country's tax laws.

The only issue I see pertains to compliance. For example, will your presentations require additional disclosures because you're working from country X, which has some sort of compliance quirk? I can see this being a big deal in Equity Research, considering the different rules being rolled out like MFIDI 2. However, not sure if for banking it will be an issue.

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May 13, 2020

Ok, so it looks unanimously that even though I am working outside of NYC, I have to still pay NYC taxes regardless of how long I will be outside of NYC outside of this pandemic.

What a bummer! Is there any way this will change if I am living outside of NYC for a certain period of time? I don't foresee myself leaving my non-NYC home for the next few months...

I think you know what I am doing.

  • Business School in PE - LBOs
May 13, 2020

No that is certainly not the consensus. These are the facts:

You only pay nyc taxes if you spend >182 days in nyc while also having a permanent place of residence in nyc. You don't need to worry about any of this. Just tell hr where you are - say your residence is now x state. If u meet the 182 threshold you're not a resident

https://www.hodgsonruss.com/what-to-expect-in-a-ne...

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May 13, 2020

So I have my parents' house outside of NY and let's say this thing lasts >182 days (March until September) and I am working outside of NY until September. Can I then get taxed by the state I'm living in?

I think you know what I am doing.

May 14, 2020

DO NOT read any of the comments on here as there's a lot of misinformation. Do a Google search on residency and income tax laws for your state and employment and income tax laws for the state where your employer is located. The rules are not the same in every state; in some cases you might owe tax for the state in which you're employed and in others you might owe tax for the state in which you reside it all depends on your particular situation.

And contrary to what someone else here has said mail forwarding is an easy way for the IRS to catch you committing tax fraud and I advise against doing this. If you're going to go that route I recommend finding someone who resides in the state where you want to claim residency and use a real address and not a PO Box or mail forwarding.

If you're still confused hire a tax attorney or consult your family accountant but a search engine query will answer a lot of your questions.

May 21, 2020

It seems like we'll all be WFH until Sep-Oct, which will mean >182 days spent in another state. Will I then get taxed per my state of residence accordingly?

I think you know what I am doing.

  • Intern in IB-M&A
May 22, 2020

wait wtf why are interns being taxed

May 23, 2020

Because you make money...

May 24, 2020

https://media.giphy.com/media/12msOFU8oL1eww/giphy.gif

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

  • Intern in IB-M&A
May 24, 2020

fucking unfair

  • Analyst 1 in IB - Ind
May 23, 2020
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May 24, 2020
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I think you know what I am doing.

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