Connect with us

Connecticut

New Jersey is pushing local telecommuters who work for New York companies to appeal their Empire State tax bills

Published

on

New Jersey is pushing local telecommuters who work for New York companies to appeal their Empire State tax bills


Telecommuting, a pandemic-era novelty that has become a permanent alternative for many people, has some Connecticut and New Jersey employees of New York-based companies questioning why they still have to pay personal income tax to the Empire State.

Their home states are wondering as well.

Fed up with losing out on hundreds of millions of dollars in tax revenue each year, New Jersey is now offering a state tax credit to residents who work from home and successfully appeal their New York tax assessment. Connecticut is considering a similar measure.

The Garden State’s bounty — a rebate worth roughly half a person’s refund of income taxes they paid to New York for the 2020-2023 period — has been claimed so far by one winning litigant since the state made the offer in July, according to the state’s Division of Taxation. That taxpayer received a $7,797.02 refund for their efforts. Officials hope that person’s windfall will encourage others to follow suit.

Advertisement

Another New Jersey resident who is taking up the state’s offer is Open Weaver Banks, a tax attorney who prefers working from home to braving an “awful” commute into the Big Apple. She’s also filed one of a growing number of similar challenges.

“The process of doing the refund and the appeal isn’t all that intimidating to me,” said Banks, a tax partner at Hodgson Russ LLP. “I’m on New Jersey’s team here. I would like to see more residents doing this. I think they have a really fair point.”

New York requires out-of-state commuters who work for New York-based companies to pay New York income taxes, even if they’ve stopped physically going in to the office most days a week, unless they can satisfy very strict requirements for what constitutes a bona fide home office.

A home office near a specialized track to test new cars, for example, might qualify if it couldn’t be replicated in New York. But a worker with specialized scientific equipment set up in their home that could be duplicated over the border would still have to pay, according to a memorandum from the New York State Department of Taxation.

When the nature of work was upended in 2020, New York should have “softened” these requirements, Banks said. “And they didn’t. They are just standing by and fighting the claims.”

Advertisement

Both neighboring states have implemented “retaliatory” tax rules that affect New Yorkers who work remotely for Connecticut or New Jersey-based companies, but these workforces are far smaller and their overall tax payments don’t make up the difference.

Out-of-state taxpayers paid New York nearly $8.8 billion in 2021 in taxes, roughly 15% of the state’s total income tax revenues, according to the Citizens Budget Commission in New York. Of that, $4.3 billion came from New Jersey taxpayers and $1.5 billion from Connecticut taxpayers.

It’s unclear how much of that was earned at home. But out-of-state employees of New York-based companies who work remotely are increasingly appealing their tax bills, Amanda Hiller, the acting commissioner and general counsel for the New York Department of Taxation and Finance, told state legislators recently.

Hiller acknowledged that New York’s decades-old policy, known as a “convenience of the employer rule,” has created a financial burden for New Jersey and Connecticut, which provide tax credits to their residents for the income taxes they’ve paid New York so they are not double-taxed.

New Jersey’s Division of Taxation said the state’s long-term goal is to have New York’s rule overturned entirely, something that will likely require a taxpayer’s legal challenge to succeed before the U.S. Supreme Court. That could be a tall order: New Hampshire tried to sue Massachusetts for temporarily collecting income tax from roughly 80,000 of its residents who worked from home during the pandemic, and the Supreme Court rejected the complaint without comment.

Advertisement

Officials in New Jersey estimate it could reap as much as $1.2 billion annually if residents working from home for New York companies are taxed at home. Connecticut could recoup about $200 million, its officials say.

Connecticut Gov. Ned Lamont has proposed an initiative similar to New Jersey’s that needs final legislative approval. It’s unclear, however, whether it can pass before the session ends May 8.

“We think it’s an unconstitutional overreach by the state of New York,” Jeffrey Beckham, secretary of Connecticut’s state budget office, said recently. “We think our residents should paying tax to us and they’d be paying at a lower rate.”

Indeed, the top marginal state income tax rate, as of Jan. 1, for individuals in New York is 10.90%. Connecticut’s top rate is 6.99% and New Jersey’s is 10.75%, according to the Tax Foundation.

“An awful lot of people are hurt by these laws,” said Edward Zelinsky, a Connecticut resident, tax law expert and professor at Yeshiva University’s Cardozo School of Law in New York City. “While New York and other states like to pretend that these are wealthy people, the people who are most hurt by this rule are often people of modest income, middle income, people who can’t afford lawyers.”

Advertisement

Zelinksy has been trying, so far without success, to challenge New York’s tax rule for about 20 years, including a pending case over the income he earned working from home while his school was closed due to COVID-19 restrictions.

A small number of states, including Arkansas, Delaware, Nebraska and Pennsylvania, have tax rules similar to New York’s. New Jersey and Pennsylvania have a reciprocal income tax agreement.

Andrew Sidamon-Eristoff, who is in the unique position of being the former New Jersey state treasurer and a former New York commissioner of taxation and finance, believes eventually the right litigant will “get it before the right court to challenge it.”

But former New Jersey state Sen. Steven Oroho, an accountant who commuted for nearly two decades into New York City and who pushed as a legislator to address the inequity, said he’s skeptical of New Jersey’s commitment to the effort, which puts the financial onus of a potentially lengthy and expensive legal challenge on the individual taxpayer.

“New York is very, very aggressive and unfortunately, in my view,” said Oroho, “New Jersey has been extremely passive.”

Advertisement
Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up for free.



Source link

Connecticut

Car catches fire in Trumbull

Published

on

Car catches fire in Trumbull


Intense flames engulfed a car early Saturday morning in Trumbull.

Officials say it happened around 3:30 a.m. on Richfield Drive near the Bridgeport town line.

Trumbull and Bridgeport fire crews worked to put out the flames.

It was not immediately known how the fire started or if there were any injuries.

Advertisement



Source link

Continue Reading

Connecticut

I moved from Connecticut to the South chasing a cheaper, simpler life. It wasn’t at all what I expected, so I moved back.

Published

on

I moved from Connecticut to the South chasing a cheaper, simpler life. It wasn’t at all what I expected, so I moved back.


This as-told-to essay is based on a conversation with Sandra Bonola, 56, who moved from Connecticut to Charleston, South Carolina, in 2021, then to Beaufort, South Carolina, in 2023, before deciding the South wasn’t right for her. The conversation has been edited for length and clarity.

I am a native New Englander, born and raised in Connecticut. In late 2021, I started thinking seriously about moving. I’m an empty nester, and thanks to my remote job, I can work from anywhere in the country.

I was drawn to the South because people talked about it as if it were the promised land. The stories made it seem like it had better weather, cheaper homes, and a more affordable cost of living. I bought into that and told myself, “If I move to the South, I can have an easier life, and it won’t be as expensive.”

I decided to move to Charleston, South Carolina. I figured that there, I’d be outside more, near the beach, have a lower cost of living, and have access to the coast. I was also hoping for that small-town vibe and Southern charm.

Advertisement

I packed up the 2,500-square-foot Colonial I had lived in for 20 years and moved. I got rid of a lot of things I no longer needed and put the rest into storage.

I was really hopeful Charleston would be right for me. But about four months after moving there, I realized that almost everything I had hoped for was turning out to be the opposite.

I tested the waters in Charleston first

In Charleston, I stayed in a friend’s apartment and paid rent month to month while I decided whether I wanted to buy a home there. I’m grateful for that setup because it gave me a trial period. In those four months, I learned a lot about Charleston — and about what I actually wanted.

One of the first things I noticed was that everybody seemed to be moving there. The city was crowded, and navigating the downtown area was always challenging. Its streets were also full of traffic — it would take me up to an hour to try to get to downtown Charleston from John’s Island.

The city was also more expensive than I expected. I was somewhat insulated from housing costs because I was renting from my friend, but food, entertainment, and taxes were all much higher than I had anticipated.

Advertisement


Pedestrians walk past pastel historic storefronts on a sunny street with palm trees and shop awnings.

The historic downtown of Charleston, South Carolina. 

Jeff Greenberg/Universal Images Group via Getty Images



The Southern charm I was hoping for also didn’t feel as I expected. Charleston has a big “going out” culture, much of which seems to revolve around where to eat or drink. That’s not really my thing. For me, the city lacked some of the creative flavor I was looking for.

The climate was another big factor. Everyone knows New England can have brutal winters, and I don’t like shoveling snow, so I was eager to get away from that. But after moving South, I realized I had traded brutal winters for brutal summers. It was just so hot.

Advertisement

At first, I thought I just needed time to adjust. But the more I explored Charleston, the more I realized the lifestyle I had imagined didn’t match my reality.

I was getting annoyed, then frustrated, and then I was done.

I tried the South again, but it still wasn’t for me

I didn’t feel like I had anything to lose, so I moved back to Connecticut in 2022. Instead of feeling defeated, I actually felt grateful that I had given Charleston a shot.

For a while, I rented a month-to-month beach house in Connecticut while I looked for a home to buy. But the homebuying search in New England felt bleak. I was trying to downsize, but even the smaller homes came with big-home prices. It made me feel like I might never find what I was looking for.

After house hunting for 14 months in Connecticut, I really wanted to put down roots. The idea of moving to a quieter, more affordable small town was still appealing. So in July 2023, I decided to try the South again — this time in Beaufort, South Carolina, a small town I had explored while living in Charleston.

Advertisement

There, I was able to purchase a beautiful three-bedroom ranch home for $425,000. It was a new build in a planned community.

The house checked a lot of boxes. It was beautiful, new, and far more affordable than what I could have bought in Connecticut. But I still didn’t feel at home in Beaufort.

Affordability is important, but you also need community

In Beaufort, it was so hot that I rarely saw or interacted with my neighbors. People would say hello and then quickly go back inside. I kept thinking, “How am I ever going to socialize here?”

I joke that I’m an OG remote worker because I started working remotely in 2008. Remote work gives you some social interaction, but you still need to get outside and make real connections with people.

I tried to put myself in situations where I could meet people. I looked for yoga classes, local events, and other activities I could join. But what I found was that many people had moved there for family or moved with a spouse, and they mostly kept to themselves.

Advertisement

It lacked the kind of community connection I was used to seeing in the Northeast. I kept trying to make those connections and stay open to it, but it just kept falling flat.

I tell people this story, and sometimes they understand it, and sometimes they don’t. But I knew I was done one morning when I woke up, looked at the ceiling fan in my bedroom, and thought, “I really hate that fan, and I’m losing hope for my life.”

I didn’t appreciate Connecticut’s beauty until I moved back

In 2024, I moved back to Connecticut. Right now, I’m living on the coast in an apartment inside a refurbished Civil War-era hospital. I’m on one of the top floors, so I can see the boats and the water.

I’m still searching for a home and making offers with more confidence. Home prices are high here, but prices down South are creeping up, too.

I’ve started thinking about owning in Connecticut more as an investment in both my future and my happiness. I’ve set a budget of about $800,000 for a home, though some of the homes I’ve been interested in have been closer to $650,000.

Advertisement

I’m seeing possibilities I didn’t see before, and that’s exciting.


Sandy shoreline curves along a calm bay with small boats, coastal houses, yellow flowers, and distant islands.

A sandy bay in Connecticut. 

Kate Stoupas/Getty Images



Being back in Connecticut has been eye-opening. I don’t think I fully appreciated its beauty until I had something to compare it to.

There’s so much opportunity here. I love the energy and the people. I’ve been taking advantage of the location, too, doing things like hopping on a train to New York to see a show or making more of an effort to connect with friends.

Advertisement

When I think about whether I’d move somewhere else again, I keep coming back to something a photographer once told me in Massachusetts. He had lived in Bali with his family, and I remember asking, “You lived in Bali? Why would you come to Massachusetts?”

I’ll never forget what he told me. He said, “I can go anywhere in the world from an airport, but you really have to realize the ground beneath your feet is beautiful if you choose to see it that way.”

That stayed with me. It changed the way I think about Connecticut and made me realize I needed to take the blinders off. There was beauty right at my feet — I just needed to see it.





Source link

Advertisement
Continue Reading

Connecticut

Valkyries hit new highs in win over lowly Connecticut Sun

Published

on

Valkyries hit new highs in win over lowly Connecticut Sun


The second-year Golden State Valkyries keep clearing hurdles that have never been scaled in the history of the WNBA.

They did it again Friday night.

Across the country from Ballhalla, against an opponent with the league’s worst record, the Valkyries became the fastest WNBA expansion franchise to 40 victories.

They needed just 68 games over two seasons to hit the mark.

Advertisement

That was among the bullet points in their 79-64 victory over the Connecticut Sun, an outcome that extended Golden State’s franchise-record win streak to seven games, including the first four in a five-city trip that concludes Wednesday at Indiana.

The Valkyries overcame a rough start on a night in which their All-Star forward, Gabby Williams, was ruled out before tip-off because of a back injury that sidelined her in the fourth quarter of the team’s win in Toronto on Wednesday.

Connecticut, which fell to 5-18, stormed to a 9-2 lead in the opening minutes and maintained an advantage into the second quarter even though its leading scorer on the season, center Brittney Griner, missed her second consecutive game because of a quad strain.

But the Valkyries’ highly touted defense eventually put a grip on the home team, and Golden State grabbed its first lead, 24-23, when Kaila Charles drove for a layup.

The visitors led 30-25 at halftime.

Advertisement

Connecticut kept the margin within single digits for nearly all of the third quarter, but Veronica Burton closed the period with an up-and-under layup as time expired to give Golden State a 54-44 cushion heading into the final 10 minutes.

The Valkyries put the score out of reach when Charles and Burton made back-to-back 3-pointers to widen the lead to 60-44 with 7:19 to play.

Burton had a superb game against her former team, finishing with 17 points, six assists, three rebounds, two blocks and a steal. The Valkyries are undefeated this season when the point guard has at least six assists.

Golden State’s bench contributed 42 points, seven more than its league-high season average. Janelle Salaun led the reserves with 16 points, seven rebounds, and three steals. Laeticia Amihere added six points, five rebounds, three blocks and three assists. The Valkyries also got nine points from Tiffany Hayes and eight from Kaitlyn Chen.

Williams, meanwhile, gave the team a boost from the bench.

Advertisement

“Gabby is still going to contribute, and she still helped us,” Burton said. “She was one of the loudest people throughout the entire game. With that … it’s a next-man-up mentality. There is not necessarily any drop-off. We find different ways to win, and we just rely on every single person on this team.”

With the win, Golden State is the first to 17 victories this season, as the result on Friday improved its record to 17-7, tying the Valkyries with Las Vegas and Minnesota (both 16-6) for the league’s top mark.

How has Golden State done it?

It starts with “high-character” players the front office brought in, coach Natalie Nakase said, noting that everyone has accepted their roles, some more challenging than others.



Source link

Continue Reading
Advertisement

Trending