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Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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For 2007 I paid payroll taxes to two states NY and PA.

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For 2007 I paid payroll taxes to two states: NY and PA. On my w2 in box 16 for NY there is an amount - say 200. Also in box 16 there is an amount for PA - say 100. The issue is that the amount in box one (wages, tips, and other compensation) is the same amount as in box 16 for NY - in this example that would be 200. My total income for 2007 was 200. Is box 16 correct? How can I report 200 to NY when I am reporting 100 to PA? If I report 200 to NY and 100 to PA then I am saying that I earned 300 but I only earned 200. My tax accountant wants the w2 ammended but my payroll company says that a NYS law that went into effect 3 years ago claims that the amount in box 1 has to be the same amount that we report to NYS. Does this make any sense? Does my w2 need to be corrected? Who is right - my tax accountant or the payroll company?
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.
Please specify in which state do you live? Did you change the residency during the year?
Customer: replied 8 years ago.
Reply to LEV's Post: I live in PA. I am an owner of the company and I work from home. We registered to do business in PA during the last quarter of the year. We began deducting PA payroll taxes beginning with the 11/30/07 pay cycle.
Expert:  Lev replied 8 years ago.

OK, so why the NY taxes were withheld?

Did you provide any services in NY?

Customer: replied 8 years ago.
Reply to LEV's Post: I do all the bookkeeping for a NY company. They do business in NY and I invoice the clients etc.. (In 2007 I never worked in the NY office.) We paid NY the payroll taxes because we were not registered as a PA business.
Expert:  Lev replied 8 years ago.

The company provides you a workplace in NY and that is considered your job location. Thus your income is considered from NY sources and is taxable for NY. You would need to file NY income tax return as a non-resident.

As you are a PA resident - all your income is taxable in PA despite its source - I am not sure why only part of your income is reported as PA income - I would expect it would be $200. You would need to file PA tax return as a resident and will claim a credit for taxes paid to NY - that will allow to avoid double taxation of the same income. You should attach a copy of your NY tax return to justify your claim.

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