NY resident with internship in WA, which state taxes do I need to have withheld?

1. WA has no personal income tax.
2. As a NY resident your wages are taxed regardless of where you perform your services.

Whether you "need" to have NY tax withheld is a personal decision. Make your decision based on the fact that the wages reported on your WA state W-2 must be included on your NYS tax return.

Your Washington employer might not be able to withhold NY tax, even if you want them to, if they have no employees in NY and no physical presence in NY. If you think you will not have enough NY withholding to cover your NY tax at the end of the year, you might have to make estimated tax payments to NY.

You have to estimate what your total NY tax will be for the year, and then compare that to your total NY withholding for the year. If the summer internship is low-paying, and that's your only income for the year, you might owe little or no NY tax.

Bob Sandler

Does your employer even give you the option to have other-state taxes withheld? I'd think that especially in a state that has no income tax that may not be an option.

Jay Wiedwald Oakland, CA (...and we DO have a state income tax!)

withheld? I'd think that especially in a state that has no income tax that may not be an option.

It's employer choice if they have no nexus (business connection) with the state of residence. If they have nexus with the other state then they "generally" have to withhold. NYS would have the nexus rules for withholding by employers for NY residents.

withheld? I'd think that especially in a state that has no income tax that may not be an option.

You can also find a very good article on this subject (specific to NYS but generally relevant for other states) at: State Withholding Taxes: Who, What, Where by Andrew R. Ben-Ami a Partner in the Tax Practice Group at Tarter Krinsky & Drogin LLP

Considering how many Oregon residents work in southern Washington, I'd be pretty amazed if payroll services weren't prepared to handle withholding from other states.

Needless to say, only the employer's payroll department (probably with a call to the payroll service) can give a definitive answer.

True, but unlikely. If the student is claimed as a dependent by the parents, the student only gets a $3,000 standard deduction for NYS and no personal exemption.

Don EA in Upstate NY

It's not a question of withholding for other states or not withholding for other states. Each state that the employer withholds for has to be set up separately. The payroll service can probably handle any state, but the particular employer might very well withhold for Oregon but not for NY.

True.

Bob Sandler