28 East 21st Street #4AB
3 beds•2 baths
Multi-family in Flatiron
Listed by Corcoran
29 7th Avenue
4 beds•2 baths
Rental Unit in Greenwich Village
One57аt 157 West 57th Street
Condo in Midtown
24 sales•7 rentals
OK. If you live in CT and have a job in New York, where do your state income taxes go? Since NY has a higher state tax rate than CT, do you get the amount of NYS taxes paid in excess of CT back as a credit?
You will have to file NY State for your NY related income and CT State for other income.
thanks HT1. Have a specific example/question:
If you are supposed to pay $10,000 a year in NY state income taxes and because the rate is lower in CT, you are supposed to pay $8,000 a year there, would you get a $2,000 credit back for overpaying the NY state taxes if you reside in CT?
No, you won't get anything back. In most cases, you effectively pay the higher tax rate of where you live or where you work. On the plus side, you won't pay NYC taxes and CT will give you credit for your NYS taxes so you won't have to pay $18,000 in taxes.
thanks jordyn. Well that really sucks! So if you touch new york in any way you get dinged with high taxes. If you live here you get dinged; if you live somewhere else and work here, you get dinged as if you lived here?
Then why do people always talk about moving to CT for tax reasons? Something I'm missing?
In fairness, since your income is generated in New York it doesn't seem unreasonable that it would be taxed there.
I think the principal advantage to living in CT would be to avoid NYC taxes and to get lower tax rates on other income (e.g., investment income).
To follow up on Jordyn's last comment, real estate taxes are often cheaper in CT than NY. I recently looked at properties in Westchester (Larchmont, Rye, Chappaqua) and Greenwich; in comparison to CT, taxes for similar properties were often double in NY.
my husband is freelance. works in NYC 3 days a week...every week. we live in CT.
He has to file a 1099....he gets a check for $6,500 a month...how much do we need to put aside for taxes...we file quarterly.
I live in CT and considering a freelance job in NYC but I need to get an estimate on what I'll be paying in taxes to see if it's worth taking the job. I hope someone can answer. I believe my gig will pay about $2500/wk. W2. After CT tax, NYS tax and NYC tax, commuter cost and childcare for two kids 12 hrs/day. I don't want to end up paying more in expenses than I'm bringing in a week to be away from my children 12hrs. a day.