Subject to NY withholding?

[David]

Client lives and works in NC but employer has asked her to work in NY for approx 6 months. She lives in a hotel and returns home on weekends. Is she subject to NY state income tax? Thanks

[BOB W]

Yes, and will file as a non-resident for NY. All of her out of pocket expenses while on tempory assignment will be deductible on federal and NYS returns.

[Uncle Sam]

NY Withholding

Yes.
And be careful with the residency period. If she's there for over 183 days - she'll probably be liable for NYC resident income taxes as well.

NYC does not tax nonresidents for income earned in NYC (assuming W-2 situation).
There are business taxes, not personal income taxes, that would be subject to NYC tax regardless of residency time. But once you cross the "more than half-year" situation - NYC construes you to be a resident subject to tax.

NYS client would only be liable for income earned from NYS sources as a part year/nonresident.(IT-203).

[JohnH]

Meanwhile, NC will tax her on her entire income and then allow a credit for tax paid to NY. However, the credit cannot exceed the NC tax proportional to the income earned in NY. This means she may not get a full credit on the NC return for the tax paid to NY.

[New York Enrolled Agent]

Yes.
And be careful with the residency period. If she's there for over 183 days - she'll probably be liable for NYC resident income taxes as well.

NYC does not tax nonresidents for income earned in NYC (assuming W-2 situation).
There are business taxes, not personal income taxes, that would be subject to NYC tax regardless of residency time. But once you cross the "more than half-year" situation - NYC construes you to be a resident subject to tax.

NYS client would only be liable for income earned from NYS sources as a part year/nonresident.(IT-203).

Sam

Doesn't the 183 day test also require a permanent place of abode?

[Gary2]

The base note doesn't mention NYC, so that may not apply.

What's less obvious is that mailing addresses in NYC often don't say that. An address of "New York, NY" implies Manhattan. Other parts of NYC will often use either the borough (e.g. Brooklyn, NY) or the neighborhood name for the zip code (e.g. Jackson Heights, NY).

I apologize if this seems overly pedantic, but it may slip by someone from as far away as NC with no interest in staying there - though it's unlikely they'd actually be near the city border. (Humorous aside: My college shared the addresses of all roommates before the start of the term. Two roommates, from the suburbs, knew I was from the city. The third, from the mid-west, mistakenly assumed I must be from a really, really tiny upstate town since he couldn't find my NYC neighborhood on his map.)