Hi,

I worked in NYC for 7 months for a company based in Houston. I live in Houston and was only in NY on a temporary project. NY state and city taxes were deducted from my paycheck. Am I able to claim all of those taxes back as a refund? My company has a tax equalization program that would offset any tax differences between my home and temporary assignment locations. It has become a hassle to try and get them to reimburse me the tax amount so I was hoping I would be able to recoup all of it through a refund.

Thanks for your help,

RD

What happens is that regardless of your ER’s location , TX in this case, you need to pay NYS income taxes on any income you earn while laboring in the state of NYS.As, your home state does not tax you based on your total income, then you can claim a credit on taxes you paid to NY on Sch A of 1040 as long as you itemize deductions;if not, you can’t claim NYS taxes paid to NYS.For NYC taxes, The NYC income tax is based on your NYS taxable income, so there are no city-specific deductions. There are tax credits that specifically offset NYC income tax however. NYC income tax credits reduce the amount of NYC income tax you owe. They will not affect the amount of NYS income tax that you owe. Some credits are refundable, meaning that any leftover credit in excess of your tax liability can be refunded to you. These credits are available to offset NYC income tax: Most people living outside the City are not subject to NYC personal income tax. However, non-city residents who are Employees of NYC must file Form 1127 and pay taxes each year. If you are a resident for less than a full year it is pro-rated. If you were resident for 7 months you owe 7 months worth of tax, there is no minimum residency period before the tax kicks in.. You can contact The New York State
Department of Taxation and Finance for more info in detail.