NY resident with internship in WA, which state taxes do I need to have withheld?

[Rebecca]

Hi,

I'm a college student from NY state. Both my permanent residence and my
university are in NY. However, this summer I'm in the state of Washington for
a paid internship. Do I need to have NY state taxes withheld from my
paychecks in WA?

Thanks,
Rebecca


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[Alan]

On 5/31/13 11:55 AM, Rebecca wrote:
> Hi,
>
> I'm a college student from NY state. Both my permanent residence and my
> university are in NY. However, this summer I'm in the state of
> Washington for
> a paid internship. Do I need to have NY state taxes withheld from my
> paychecks in WA?
>
> Thanks,
> Rebecca
>
>

1. WA has no personal income tax.
2. As a NY resident your wages are taxed regardless of where you perform
your services.

Whether you "need" to have NY tax withheld is a personal decision. Make
your decision based on the fact that the wages reported on your WA state
W-2 must be included on your NYS tax return.

--
Alan
http://taxtopics.net

[Bob Sandler]

>I'm a college student from NY state. Both my permanent residence and my
>university are in NY. However, this summer I'm in the state of Washington for
>a paid internship. Do I need to have NY state taxes withheld from my
>paychecks in WA?

Your Washington employer might not be able to withhold NY
tax, even if you want them to, if they have no employees in
NY and no physical presence in NY. If you think you will not
have enough NY withholding to cover your NY tax at the end
of the year, you might have to make estimated tax payments
to NY.

You have to estimate what your total NY tax will be for the
year, and then compare that to your total NY withholding for
the year. If the summer internship is low-paying, and that's
your only income for the year, you might owe little or no NY
tax.

Bob Sandler

[jay_wi...@alumni.pitt.edu]

On Friday, May 31, 2013 12:33:36 PM UTC-7, Alan wrote:
> On 5/31/13 11:55 AM, Rebecca wrote:
>
> > Hi,
>
> > I'm a college student from NY state. Both my permanent residence and my
> > university are in NY. However, this summer I'm in the state of
> > Washington for
> > a paid internship. Do I need to have NY state taxes withheld from my
> > paychecks in WA?
> > Thanks,
>
> > Rebecca

Does your employer even give you the option to have other-state taxes withheld? I'd think that especially in a state that has no income tax that may not be an option.

Jay Wiedwald
Oakland, CA
(...and we DO have a state income tax!)

[Alan]

On 5/31/13 2:23 PM, jay_wi...@alumni.pitt.edu wrote:
> On Friday, May 31, 2013 12:33:36 PM UTC-7, Alan wrote:
>> On 5/31/13 11:55 AM, Rebecca wrote:
>>
>>> Hi,
>>
>>> I'm a college student from NY state. Both my permanent residence and my
>>> university are in NY. However, this summer I'm in the state of
>>> Washington for
>>> a paid internship. Do I need to have NY state taxes withheld from my
>>> paychecks in WA?
>>> Thanks,
>>
>>> Rebecca
>
> Does your employer even give you the option to have other-state taxes withheld? I'd think that especially in a state that has no income tax that may not be an option.
>
> Jay Wiedwald
> Oakland, CA
> (...and we DO have a state income tax!)
>

It's employer choice if they have no nexus (business connection) with
the state of residence. If they have nexus with the other state then
they "generally" have to withhold. NYS would have the nexus rules for
withholding by employers for NY residents.

--
Alan
http://taxtopics.net

[Alan]

On 5/31/13 2:23 PM, jay_wi...@alumni.pitt.edu wrote:

> On Friday, May 31, 2013 12:33:36 PM UTC-7, Alan wrote:
>> On 5/31/13 11:55 AM, Rebecca wrote:
>>
>>> Hi,
>>
>>> I'm a college student from NY state. Both my permanent residence and my
>>> university are in NY. However, this summer I'm in the state of
>>> Washington for
>>> a paid internship. Do I need to have NY state taxes withheld from my
>>> paychecks in WA?
>>> Thanks,
>>
>>> Rebecca
>
> Does your employer even give you the option to have other-state taxes withheld? I'd think that especially in a state that has no income tax that may not be an option.
>
> Jay Wiedwald
> Oakland, CA
> (...and we DO have a state income tax!)
>

You can also find a very good article on this subject (specific to NYS
but generally relevant for other states) at:
State Withholding Taxes: Who, What, Where by Andrew R. Ben-Ami a Partner
in the Tax Practice Group at Tarter Krinsky & Drogin LLP

http://www.tarterkrinsky.com/media/pub/tearsheets/26-27.pdf

--
Alan
http://taxtopics.net

[John Levine]

>Does your employer even give you the option to have other-state taxes
>withheld? I'd think that especially in a state that has no income tax
>that may not be an option.

Considering how many Oregon residents work in southern Washington, I'd be
pretty amazed if payroll services weren't prepared to handle withholding
from other states.

Needless to say, only the employer's payroll department (probably with
a call to the payroll service) can give a definitive answer.



--
Regards,
John Levine, jo...@iecc.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. http://jl.ly

[Don Priebe]

> You have to estimate what your total NY tax will be for the year, and
then compare that to your total NY withholding for the year. If the
summer internship is low-paying, and that's your only income for the
year, you might owe little or no NY tax.

True, but unlikely. If the student is claimed as a dependent by the
parents, the student only gets a $3,000 standard deduction for NYS and
no personal exemption.

Don EA in Upstate NY

[Bob Sandler]

>>Does your employer even give you the option to have other-state taxes
>>withheld? I'd think that especially in a state that has no income tax
>>that may not be an option.
>
>Considering how many Oregon residents work in southern Washington, I'd be
>pretty amazed if payroll services weren't prepared to handle withholding
>from other states.

It's not a question of withholding for other states or not
withholding for other states. Each state that the employer
withholds for has to be set up separately. The payroll
service can probably handle any state, but the particular
employer might very well withhold for Oregon but not for NY.

>Needless to say, only the employer's payroll department (probably with
>a call to the payroll service) can give a definitive answer.

True.

Bob Sandler