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by WkndTriathlete
1022 days ago
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I've read through the NY state convenience rules. They are written so poorly that Albany, in theory, can tax someone who attends on-site meetings in NY for two days out of the year that otherwise works remotely from Fairbanks, Alaska, which is utterly ridiculous. At some point I expect SCOTUS will slap that law down based on the Interstate Commerce Clause but the correct challenge has not reached the docket yet. But I also expect that almost everyone that might be affected by this has just worked around the NY state law by now. But for those of you considering working remotely for a company based in New York state you should be aware of the convenience rules. Based on my reading of them I would recommend against working remotely or ensure that the company helps you comply with the convenience laws so you don't fall afoul of them. |
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Every state has the right to collect tax from income earned from work performed within the state’s boundaries. Sports players and performers often pay a ton of state income tax while only working in a state for 3 hours.
Are you suggesting that people who travel to work to NY owe NY income taxes on ALL of their income, even that which was earned outside of NY?
> At some point I expect SCOTUS will slap that law down based on the Interstate Commerce Clause but the correct challenge has not reached the docket yet.
I am not so sure about this. With the South Dakota Wayfair ruling, and the proliferation of “market based sourcing” rules for determining taxable revenue, even this conservative Supreme Court does not seem to be leaning towards canceling that. Right now, if you have a business in one state (including just you working by yourself as a 1099 contractor), and sell your services to a recipient in a state with market based sourcing rules, then you will owe business taxes to the state where the benefits of your work was received, even though you never stepped foot or even shipped anything physical to that state.
See this for example:
https://www.withum.com/resources/new-jersey-legislation-impl...