I have a client that lives in Arizona, but her company is in New York. In 2025 I filed her as a resident of AZ because they took AZ taxes out. She recently got a letter from her companying saying that they are going to enforce the New York's "convenience of the employer" rule., Now they are taking out both AZ and New York taxes. Does that sound correct and how will I file her next year. She was going to have them stop taking AZ taxes out, but her income is earned in AZ
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Here's the link to the instructions on "convenience of the employer"
Uncle Sam, CPA, EA. ARA, NTPI Fellow -
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
"That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe HowardComment
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In the past 2 years that I have done this individual; she has had a w2 from this company with AZ taxes withheld so I filed her as a resident. This will be the first time they will be taxing her twice. Alot of clients I have give me w2's with another's states and only AZ taxes withheld.Comment
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So she should stop having AZ taxes taken out? Is this a new law for NY since she did not have to do this for 2023 and 2024 taxes?Comment
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You really need to answer RR’s post. The mere fact that there is state withholding doesn’t make the taxpayer a resident.
is she a resident of AZ? Did she previously work in NYS for the same employer and move to AZ to live there? You need to provide details of her work history so posters can give you an accurate reply.Comment
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