[CTNYCT]

So I just read the thread about the retroactive income tax, which is clearing something up for me, but I have a question about taxes in general since our accountant seems to be on vacation.

We're here in CT a year to the day today. My husband works in Manhattan. He just checked his taxes (he almost had a heart attack, CT has taken almost $1,000 out of his check this month?!) and he sees that he is still be taxed by New York City, New York State, and CT State.

Isn't one of these at the least supposed to stop?? I can't imagine we're going to lose almost $2,000 a month in taxes... something has to be awry.

Anyone else work in the city and live in CT? If anyone can clear that up I'd appreciate it. Thanks!

[gmdealerguy]

We live in CT also for the last year or so and my wife and I work in NY(Westchester Suburbs though) too. Something must be wrong......You should not have to pay income tax to a state that you dont work in..We pay only NY income tax. All I did was change my address with my office manager to my CT address and thats it.We pay property tax to CT because this is where we live.

[JayCT]

Have him talk to his company's Payroll Department. They should know how to do this. Jay

[SVTJayC]

You pay NY income tax (though not NYC income tax). Then you write that off toward your CT income taxes.

[gilfman]

depends on income but you should surpase it.

[Tubulus]

As the OP alluded to, there is a retroactive change in CT tax law. I don't really know all the details, but you can find something here: http://www.ct.gov/drs/lib/drs/forms/...ng/tpg-211.pdf From what I've gathered there is now a tax recapture on your CT AGI (which is basically your federal AGI). After calculating your CT tax (ie taking into account credits of NY tax) you have to add additional tax if you make enough money. DRS: IP 2011(10.1), 2011 Connecticut Income Tax Changes Affecting Withholding Requirements

So if you are in a high enough bracket, you barely save any income tax vs living in Westchester.
Am I reading this wrong?