Internship - residency, taxes and deductions

Discussion in 'Tax' started by googlegroupssg@yahoo.com, Jan 31, 2007.

  1. Guest

    I am attending school in PA and did my summer internship in
    NYC for 3 months for which I was paid, NY state taxes were
    withheld and I received a W2. I rented a room in NYC fo
    3months during this period but maintained my PA residence

    My question(s)

    1) Am I considered a part-time or non-resident for NY state
    tax purposes ? If I file NY part time resident than do I
    also have to file part time PA resident? My wife was in PA
    throughout the summer - does that mean we cannot file a
    joint return anymore?

    2) Am I required to pay NYC city tax ?

    3) Some friends at school mentioend that internship can be
    considered as "temporary job assignment" during this period
    and should be able to deduct all expenses - rent, per diem,
    travel that I incurred to generate this income.

    Any clarification would be greatly appreciated

    - deep

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    , Jan 31, 2007
    #1
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  2. Katie Guest

    wrote:

    > I am attending school in PA and did my summer internship in
    > NYC for 3 months for which I was paid, NY state taxes were
    > withheld and I received a W2. I rented a room in NYC fo
    > 3months during this period but maintained my PA residence
    >
    > My question(s)
    >
    > 1) Am I considered a part-time or non-resident for NY state
    > tax purposes ? If I file NY part time resident than do I
    > also have to file part time PA resident? My wife was in PA
    > throughout the summer - does that mean we cannot file a
    > joint return anymore?


    You are a nonresident of New York, but you have New York
    source income. You'll file a nonresident return with New
    York. Pennsylvania will give you credit for the tax you pay
    to New York (the tax liability shown on your nonresident
    return, which may be more or less than the amouont that was
    withheld), limited to the proportion of your PA tax
    liability that relates to the NY source income.

    Based on the information provided, you and your wife are
    full-year residents of PA.

    > 2) Am I required to pay NYC city tax ?


    No, because you are a nonresident of the city. If it was
    withheld from your paychecks, you'll get the refund through
    your NY state nonresident income tax return.

    > 3) Some friends at school mentioend that internship can be
    > considered as "temporary job assignment" during this period
    > and should be able to deduct all expenses - rent, per diem,
    > travel that I incurred to generate this income.


    I'll leave this "tax home" question to others in the group
    <G>

    Katie in San Diego

    << ======================================================= >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2006) - All rights reserved. >>
    << ======================================================= >>
     
    Katie, Feb 2, 2007
    #2
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  3. Shyster1040 Guest

    Since you had a non-NYS state domicile in PA and did not
    move to NY with the intent to change your domicile to NY,
    you will be a nonresident of NY. See NYS Pub. 88, available
    at:
    http://www.tax.state.ny.us/pdf/publications/income/pub88_1206.pdf

    You should check with the PA department of revenue regarding
    the PA residency rules; as a first guess, they are probably
    similar to NY's, which means that you would probably be
    considered a PA resident for the entire year - so you can
    file jointly with your wife.

    Since you lived in NYC, you will also owe NYC tax as well as
    NYS tax. NYC taxes are administered by NYS, so you only
    have to file one NY nonresident tax return. Any taxes you
    owe are probably allowed as a credit against your PA tax
    liability.

    Unless you were already employed by an employer in PA, who
    sent you to NY for the internship, your internship is
    unlikely to constitute a "temporary work assignment" and the
    expenses you mentioned are unlikely to be deductible for
    that reason.

    << ======================================================= >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2006) - All rights reserved. >>
    << ======================================================= >>
     
    Shyster1040, Feb 2, 2007
    #3
  4. Katie Guest

    "Shyster1040" <> wrote:

    > Since you had a non-NYS state domicile in PA and did not
    > move to NY with the intent to change your domicile to NY,
    > you will be a nonresident of NY. See NYS Pub. 88, available
    > at:http://www.tax.state.ny.us/pdf/publications/income/pub88_1206.pdf
    >
    > You should check with the PA department of revenue regarding
    > the PA residency rules; as a first guess, they are probably
    > similar to NY's, which means that you would probably be
    > considered a PA resident for the entire year - so you can
    > file jointly with your wife.
    >
    > Since you lived in NYC, you will also owe NYC tax as well as
    > NYS tax. NYC taxes are administered by NYS, so you only
    > have to file one NY nonresident tax return. Any taxes you
    > owe are probably allowed as a credit against your PA tax
    > liability.
    >
    > Unless you were already employed by an employer in PA, who
    > sent you to NY for the internship, your internship is
    > unlikely to constitute a "temporary work assignment" and the
    > expenses you mentioned are unlikely to be deductible for
    > that reason.


    Shyster, I almost always agree with you, but I don't think
    the OP is a NYC resident subject to the city income tax.
    NYC uses the same definition of a resident as NY state: you
    are a resident if you are domiciled in the city, or if you
    maintain a permanent place of abode and spend more than 183
    days of the taxable year there [NYC Administrative Code
    711-1705(b)(1)] He was only in the city for three months.
    He's a nonresident of the city.

    Katie in San Diego

    << ======================================================= >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2006) - All rights reserved. >>
    << ======================================================= >>
     
    Katie, Feb 3, 2007
    #4
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