As New Jersey commuters brace for New York City congestion pricing to go into effect on June 15, residents who work from home in New Jersey are already shelling out money to New York.
“I personally want the money to go to New Jersey,” says tax attorney Open Weaver Banks. “And I know New York’s law is wrong.”
Banks works from home for a business based in New York. Thanks to the “convenience of employer rule” she and other New Jersey residents must pay New York income tax, even if they only go into the office once a year.
“If you’re assigned to the New York office and you’re working outside New York remotely so you’re working from home in New Jersey, New York will treat you as if you’re working in New York,” explained Jason Rosenberg, a state and local tax accountant. “So, they will tax you on all of your income at that point.”
This convenience of employer law is not new, but since 2020 the amount of people working from home or hybrid has increased.
“New York’s been super, super, super aggressive with the convenience of employer rule and as we know it affects a lot of New Jersey residents,” Rosenberg said.