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.
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.
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