Thanks for your question today.
Based on the way NY state does its tax returns, the W-2s are correct, But you do not pay tax to NY on 100% of your income, only your pro-rata share.
You will need to do a NY NON-RESIDENT return.
That return calculates the NY portion of your tax by first calculating the NY tax on 100% of your federal income.
Then you calculate the portion of time you spent in NY State. You apply that portion to the NY tax amount, This is different than applying it first to the income income amount.
So if you 100% of your income yields a NY state tax of $5000 and you worked there 2/52 of the year = 3.8%, then you multiply the $5000 state tax by 3.8%
VA will also tax also your income as a resident.
Is that the IT-203, non-resident form?
VA will give you a credit for income tax paid to NY and other states to reduce the double taxation.
what about the hours I worked from home for the NY client? should I include those in the NY %?
Only time physically in NY State is considered for NY
also, I have timesheets with the exact hours worked in NY. can I just multiply those hours by my rate to get the NY wages?
NY does not ask for hours; it ask for days in the state
Big relief. The accountant was showing that I owed NY $8,000 in taxes for 80 hours of work!!!