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View Full Version : If you work in NY, but live in NJ/CT, do you pay NY state tax?

bsjd00
September 2nd, 2006, 10:41 PM
My NYC employer is deducting NY state taxes from my paycheck, even though I live in CT. Payroll advised me that this is correct.

Is this how taxes really work? If so, what happens when I file in CT? Do I have to pay CT and NY state taxes?

(Note: I'm talking about state taxes, not city taxes or the old commuter tax that was abolished.)

Any clarification of this would be greatly appreciated.
ZippyTheChimp
September 2nd, 2006, 11:31 PM
You must file IT-203 (nonresidents who earned income in New York State).

You must also file a resident Income Tax return for Connecticut. Information here (http://www.ct.gov/drs/cwp/view.asp?a=1462&q=266294) on how to claim credit for New York taxes paid on your Connecticut return.
OmegaNYC
September 3rd, 2006, 12:00 AM
Zippy is a Godsend, isn't he? :)
bsjd00
September 3rd, 2006, 03:14 AM
Wow, thanks for the detailed reply!

I guess this means I won't be taxed in CT, since NY taxes are higher. Too bad I did financial planning based on CT taxes. :(
ravishinglylow
September 6th, 2006, 02:04 PM
Perhaps it's different state-to-state, but I live in Wisconsin and work in Illinois, but I'm always charged WI tax. From my understanding, you are taxed by the state you reside in.
ZippyTheChimp
September 6th, 2006, 02:29 PM
Illinois has reciprocal agreements with Kentucky, Wisconsin, Iowa and Michigan. For income from wages tips, commissions, etc, earned in Illinois, you can file a return for your state of residence. For other sources of income from Illinois, you must file and Illinois nonresident return.
ravishinglylow
September 12th, 2006, 09:02 AM
Illinois has reciprocal agreements with Kentucky, Wisconsin, Iowa and Michigan. For income from wages tips, commissions, etc, earned in Illinois, you can file a return for your state of residence. For other sources of income from Illinois, you must file and Illinois nonresident return.
Interesting. Thanks for the clarification.
daver
October 2nd, 2006, 10:33 AM
I live in NYC and work in NJ. I have NYC, NY state, and NJ SUI/SDI (whatever that is) taxes withheld on my check. Is that all correct? And do I have to do anything special at tax time ala recip agreement or anything? Do I file fed, NY _and_ NJ or what? Or do I need to get an accountant, haha. Thx!
ZippyTheChimp
October 6th, 2006, 02:46 PM
Yes, the witholding is correct.

SUI is State Unemployment Insurance
SDI is State Disability Insurance

If you file a federal return and are a New York State resident, you must file a NYS Resident Income Tax return. You claim resident credit for taxes paid in another state (in your case wages in New Jersey) by filing form IT-112-R (http://www.tax.state.ny.us/pdf/2005/inc/it112r_2005.pdf)

Don't accept my answer as gospel. These things change all the time. All state taxation departments have websites with customer assistance.

http://www.nystax.gov/
daver
October 6th, 2006, 03:45 PM
Thanks for the info and links!
seanm8
February 8th, 2008, 09:52 AM
I'm not sure if anyone still visits this thread but...I am about to take a new job in Westchester but remain residing in MA. Will i be double taxed on the income earned in NYS? Do i pay one before the other? Any help is much appreciated.
Thanks
Sean
utterlyconfused
May 4th, 2008, 03:50 PM
I am getting married and have been told that since I work in NY but live in CT and my bride-to-be works in CT and lives in CT, that when we wed, I will have to pay state taxes for NY on her salary as well as mine since it is a joint return. Can anyone shed any light on this. Utterly :confused: