Living in CT and working in NYC


P

PGVIJAY

I am living in CT and I am to work in NYC. Assume that I
earn 60K/Year at my NYC(4.0% to 6.85%) Job. I believe that
I have to pay NY state tax for 60K/Year as a Non Resident.
And again I have to pay CT state tax (3 to 5%) for 60K/Year
as a resident. But I am allowed to take credit for the tax I
payed for NY. Is it True?

Can I take credit for the full amount that I paid in NY? or
just a portion of it?

Or will end up paying tax for both the states ? (Dual
taxation)

Considering the credit, If I have to pay tax to CT when the
CT Tax amount is more than the NYC tax amount , which is not
the case, when I file my return to CT I will end paying
nothing to CT as tax.
 
Ad

Advertisements

K

Katie Jaques

I am living in CT and I am to work in NYC. Assume that I
earn 60K/Year at my NYC(4.0% to 6.85%) Job. I believe that
I have to pay NY state tax for 60K/Year as a Non Resident.
And again I have to pay CT state tax (3 to 5%) for 60K/Year
as a resident. But I am allowed to take credit for the tax I
payed for NY. Is it True?

Can I take credit for the full amount that I paid in NY? or
just a portion of it?

Or will end up paying tax for both the states ? (Dual
taxation)

Considering the credit, If I have to pay tax to CT when the
CT Tax amount is more than the NYC tax amount , which is not
the case, when I file my return to CT I will end paying
nothing to CT as tax.
Your employer should withhold NY income tax on your wages.
You will file a NY nonresident return and claim credit for
the tax withheld.

The same income will also be reported to CT, where you are a
resident. CT will allow you credit for the tax you paid to
NY on your NY wages, limited to the proportion of your CT
tax liability that relates to that income. Net, you will
pay tax on that income at the higher of the two states'
average rates for your filing status and income level.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.
 
Ad

Advertisements

K

Katie Jaques

I am living in CT and I am to work in NYC. Assume that I
earn 60K/Year at my NYC(4.0% to 6.85%) Job. I believe that
I have to pay NY state tax for 60K/Year as a Non Resident.
And again I have to pay CT state tax (3 to 5%) for 60K/Year
as a resident. But I am allowed to take credit for the tax I
payed for NY. Is it True?

Can I take credit for the full amount that I paid in NY? or
just a portion of it?

Or will end up paying tax for both the states ? (Dual
taxation)

Considering the credit, If I have to pay tax to CT when the
CT Tax amount is more than the NYC tax amount , which is not
the case, when I file my return to CT I will end paying
nothing to CT as tax.
Your employer should withhold NY income tax on your wages.
You will file a NY nonresident return and claim credit for
the tax withheld.

The same income will also be reported to CT, where you are a
resident. CT will allow you credit for the tax you paid to
NY on your NY wages, limited to the proportion of your CT
tax liability that relates to that income. Net, you will
pay tax on that income at the higher of the two states'
average rates for your filing status and income level.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top