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I got H1B Visa and 83000 USD dollar petition amount as annual package.I am confused as this amount will be enough to survive there with wife and 7 year old daughter.My wife is working here and together we are earning 50LPA annual.We are settled here by owning house too.Confusion is my wife will not be able to work there on H4 Visa so the kind of life we are living here will not be possible there.Thoughts?Suggestions?Pros and Cons?
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Per NY Law on state section of W2, it will show full amount of compensation you made, in New York and outside of New York. It is your job to break in down between New York and non New York. And file a part year resident.
If he’s non ny resident, I think they still have to pay ny tax because his employer is based in ny.
If you aren’t positive how to properly prepare your return for the year, it seems like a good year to pay a professional.
NYS generally requires you to report the entire year on the W-2 no matter how much is actually taxable to NYS. I’m not sure you hired the right professional.
I'm a NY tax expert and it sounds like your employer treated 100% of your wages as NY source income under the convenience of the employer rule. Did you previously work in NY prior to IL?
Is that what they withheld? Your provider needs to prep a return or calculation to figure out what your liability is.
I guess you should be filing part year resident in both states. Jan - august in IL and sep - dec in NY.
If your firm is located in NY, then you have to pay ny tax on 100% of your salary. I think.
Ha! Amen to that. I have a call with HR tomorrow and I’ll bring this up. Thanks for your help!
Illinois will require you to pay tax on your full year income since you were a resident of more than 6 months. I believe NY will also tax you on your full year’s income since you moved there and your domicile is now NY. My understanding is that NY will consider you a resident (but someone who has more experience in personal income tax can correct me if I’m wrong). You would get a credit for taxes paid on your NY return for taxes paid to IL to offset some of that tax.
So let’s say this is what happened. Anything I can do? Or am I on the hook for FY income for NYS?
I’m not sure if someone has answered correctly for you- too many responses to read.
NYS requires every employer to report as NY wages the same amount as federal wages. Doesn’t matter if you moved there mid-year or worked on an assignment for 15 days. It’s always the same as federal.
It’s up to you to complete the schedule IT-203-B showing how much was not New York. Their formula is designed to screw you by excluding PTO from the denominator. I have skipped that section and simply entered as NY wages the amount shown on my final pay statement for the year v
Some have rightly brought up NY’s “convenience of the employer rule” as a possible issue. It applies if you are assigned to a New York office but work elsewhere. That rule should not apply prior to your move.