I do have a tax-related question – be careful what you ask for! Just simply, do you know (or know how I can find out) how many hours you have to work in New York State to be subject to State and NYC tax, when you live out of state (in this case, CA)?

That is a great question, thank you really, I will probably use it in one of my blogs one day.  Here’s the 411.  If you are physically present in NY when you are working you owe tax to NY (NYC too if you are working there).  If you are a California resident you also owe tax to California.

Enough bad news?

Okay here’s the good stuff.  You will get a credit on either CA or NY for the tax you paid in the other state.  Usually CA but some states are different I would have to look that one up.  The point is you won’t pay tax twice.

Good enough?

I have more.  Probably whoever you are working for pays most of your expenses out of pocket.  Any out of pocket expenses you incur you can deduct.  Usually in these things you would get a hotel room and a food allowance?  However just as an example if you have to wear a suit to do your job, don’t get them dry cleaned in CA.  If you take them dirty back to NY and get them cleaned it is a travel expense and deductible.  Hmm don’t tell the IRS I said that.  Anything you spend money on while in NY that is not reimbursed, keep track of.  There are some limits so depends on how much time spent but there is a good chance it will save you tax.

This blog is a collection of questions from clients and the answers.  The goal of the blog is not to answer the questions you might have.  Most times the answers are based on each client’s personal situation.  Please do not rely on this information to make important financial and tax decisions.  The advice presented here is presented to give examples of the type of information you get as a client of a true tax professional, like Ray Simmons and the preparers he employs.  Advice regarding similar issues for you should be based on your personal situation. 

Treasury Department Circular 230 Notice. “To ensure compliance with Treasury Department Circular 230, prospective clients are hereby notified that: any discussion of Federal Tax Issues contained or referenced to in this communication is not intended or written to be used and cannot be used by the prospective client or investor for the purpose of avoiding penalties that may be imposed on them under the Code.” Such discussion is written in connection with the promotion or marketing by Ray Simmons Corporation of the transactions or matters addressed in this correspondence.


About taxdude8422

Basically I am just a tax nerd, have been all my life. However I have found the more open you are to opportunities the better off you will be in this world. That makes my what is know as an open networker on Linkedin, I will connect with anyone. I am not an expert on Linkedin by any means but one day when I was asking someone to connect I mentioned that I had just been refilled on invites. My new connect asked how I did that. I used that same line for the next month and got asked the same question four times. I started thinking there was a lot of little things it took my sometime to learn. Through this blog I plan to share some of those "Linked Secrets"
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