Live/Work in CT, but paying NYS taxes?

My husband is having NYS taxes withheld, but works/lives in CT.

His company was founded in NY, and has an "office", it is a rented cubicle part of another office space. He has never worked out of the NY office, but still has NYS taxes withheld.

Can the employer do this? I have it understood, that if you physically work and conduct business in NY, then you pay NY taxes. The co. uses the NY address as a mailing address, but no work is ever performed in NY.

Any info would be greatly appreciated, thanks.

Re: Live/Work in CT, but paying NYS taxes?

I hope someone can say differently, but DH's "office" is in NJ, but he works out of our home in NY. We pay non-residential NJ income tax and resident NYS income tax

He literally steps into the NJ office maybe 3-4 times a year.

Could it have to do with the paycheck? where is that addressed from?

Re: Live/Work in CT, but paying NYS taxes?

The check is addressed from a PO Box in NY, not even the 'office' address.

Re: Live/Work in CT, but paying NYS taxes?

I'm not totally sure but I believe that if the business he's working for is a NYS registered business (check the NYS website), he will have taxes deducted and paid to NYS ...

Re: Live/Work in CT, but paying NYS taxes?

If your husband lives and works 100% of the time out of CT, then he should only have CT taxes withheld. There is no reason to have NYS taxes withheld. You now have to file a NYS tax return to show that your husband doesn't earn money in NY and to get your money back. There's no reason for it.

Re: Live/Work in CT, but paying NYS taxes?

my husband works for a CA company with no NY office (he works from home). He only pays NY taxes.

Re: Live/Work in CT, but paying NYS taxes?

If he is considered working remotely (never steps foot in the other state for business), then I would talk to the payroll department.

Myth: I need to pay tax to the state my employer is based in

True or False? Linda, a full-time Maine resident, is a remote employee who works from home, handling customer service calls for an insurance company located in Ohio. She therefore needs to pay Ohio taxes on her income.

False. What matters is where she earned her income, not where her employer is located. Any income she earns while working in Maine is subject to Maine – not Ohio – income taxes. She should only have to file a Maine tax return.

However, if Linda's employer mistakenly withheld Ohio taxes (perhaps out of habit because most of their employees do work in Ohio) then Linda will also need to file a nonresident Ohio return to recover the erroneous withholdings. She'll declare that she earned no wages on her Ohio return, and TurboTax will calculate a full refund for Ohio taxes withheld.

Tip: If you find yourself in a similar situation, let your employer know right away that taxes are being withheld incorrectly. You might even ask them to reimburse you for the additional cost of filing a nonresident return, as well as any underpayment penalties you may incur as a result of non-withholding of taxes for your resident state.Source