New York Court Says Telecommuters Must Pay NY Tax

hal9000(jr) writes "The Boston Globe is running this story on an out-of-state programmer working for a New York company who had to pay state taxes. '"New York has the right to tax 100% of a nonresident employee's income derived from New York sources," according to the 4-3 decision by Court of Appeals. The court relied on a fairness rule called the "convenience of the employer" under law that says a worker's income is taxable if he chooses to live outside the state, as opposed to if he or she was transferred there.' The dissenting opinion: 'Judge Robert Smith argued that the basis of the majority's decision that all income is taxable is "that the commissioner says it is ... The majority cites no authority at all, and offers no persuasive reason, in support of this new interpretation."'"

Comments

Taxed 100% of income?

[dido]

So does that mean that he doesn't get to keep any of his money? ;)

Seems like a very badly ambiguous way of putting it.

For fairness and consistency..

[PopeAlien]

.. lets just have everyone pay tax in every state, just in case.

Re:For fairness and consistency..

[tomhudson]

Bet you can't beat this tax form.

Imagine That...

[instantkarma1]

The government rules they can tax yet more of our money.

I, for one, welcome our NY tax refugees!

[Nova Express]

To Texas, that is. No state income tax. No insane "city" income tax like they have in the Big Apple. 2700 square foot houses can be had for $175,000 or less.

So, if you're a New York company that hires programmers, consider relocating (either in toto or a subsidiary) to Texas, where your dollar goes further, and you get to keep more of it.

We have BBQ, TexMex, and sane gun laws (i.e., the law-abiding can own one). What we lack: 3 months of snow, subways, and george Steinbrenner.

Up to you.

Re:I, for one, welcome our NY tax refugees!

[Dirtside]

We have BBQ, TexMex, and sane gun laws

True. On the other hand -- and I'm not sure if you've noticed -- but your state is infested with Texans.

Re:I, for one, welcome our NY tax refugees!

[T-Ranger]

Yes, but on the downside, you would be living in Texas.

Re:Screw New York

[PopeAlien]

Ideally in a situation like this you don't have to provide your own tea. Use the tea of the oppressor, but remember if its going anywhere near the Hudson you'll probably want to refrain from drinking the harbor-brewed tea.