N.Y. Comp. Codes R. & Regs. tit. 20 § 132.11

Current through Register Vol. 46, No. 26, June 26, 2024

Section 132.11 - Compensation not constituting income derived from New York State sources

(a) Military pay. Compensation paid by the United States for active service in the Armed Forces of the United States, performed by an individual not domiciled in New York State, does not constitute income derived from New York State sources. Accordingly, where an individual not domiciled in New York State is paid compensation by the United States for active service in the Armed Forces of the United States, such compensation received by such individual does not constitute income derived from New York State sources even though the service is performed in whole or in part within New York State. (See section 631[e] of the Tax Law.)

(b) Compensation of employees of interstate rail carriers, interstate motor carriers and interstate motor private carriers. Compensation paid by:

(1) a rail carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter I of chapter 105 of title 49 of the United States Code;

(2) a motor carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter II of chapter 105 of title 49 of the United States Code; or

(3) a motor private carrier;

to an employee who performs regularly assigned duties in two or more states shall constitute income derived from sources within such employee's state of residence. Accordingly, where an individual, who is not a resident of New York State for income tax purposes under section 605 (b)(1) of the Tax Law, is paid compensation as an employee by an interstate rail carrier, an interstate motor carrier or an interstate motor private carrier for performing such employee's regularly assigned duties in two or more states, such compensation received by such employee does not constitute income derived from New York State sources even though such employee performed services in New York State. (See Public Law 101-322 and section 11504 of title 49 of the United States Code.)

(c) Compensation of employees of interstate air carriers. Compensation paid by an interstate air carrier to an employee who performs regularly assigned duties on an aircraft in two or more states shall constitute income derived from sources within such employee's state of residence and the state in which such employee earns more than 50 percent of such compensation. For purposes of the preceding sentence, an employee shall be deemed to have earned more than 50 percent of such employee's compensation in any state in which such employee's scheduled flight time in such state is more than 50 percent of such employee's total scheduled flight time in the calendar year while so employed. Accordingly, where an individual, who is not a resident of New York State for income tax purposes under section 605 (b)(1) of the Tax Law, is paid compensation as an employee by an interstate air carrier for performing such employee's regularly assigned duties on an aircraft in two or more states, such compensation received by such employee will not constitute income derived from New York State sources unless such employee earned more than 50 percent of such compensation in New York State. (See Public Law 96-193 and section 1512 of title 49 of the United States Code.)

N.Y. Comp. Codes R. & Regs. Tit. 20 § 132.11