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Old 10-10-2011, 07:28 PM
 
8 posts, read 38,373 times
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MY wife and I both live in Hoboken. I work from home but my wife commutes to NYC for work 3 days a week. Her employer gave her an
IT-2104 tax form to fill out.

We are totally confused..there is a section that has a chart that says if you are married and make more then 100k use the chart to determine how many allowances you need to withhold...and the chart says if you make between 160k-180k should put down 14 allowances?!?!?! Is that right? Or am I not understanding it..
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Old 10-10-2011, 07:54 PM
 
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I believe that since you don't live or work in NY, that chart is irrelevant; as a nonresident you're only taxed in NY on NY income.
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Old 10-12-2011, 07:06 AM
 
Location: Manhattan
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Winkdaddy,

You owe nothing to New York City or State, only to the State of NJ.

Your wife however owes taxes to New York State and New Jersey (NY amount is credited to NJ so the NJ bite is small.) So the Withholding form is just for her income.

Assuming no kids, something like 2 deductions seems reasonable. If your wife gets a TON of money back from NYS in April then add a couple deductions, that is the easiest way to do it. Since interest rates are nil these days, having NYS hold a little extra until tax time is no great burden.

You can work it out to the nearest couple of dollars but it's really not worth the time. And some people like the forced savings and a nice refund check.


Forget that 14 exemption recommendation becasue if you vastly UNDERPAY NY, you can be be penalized at a rather stiff interest rate and penalty...and a lot of tedium.
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Old 10-12-2011, 08:41 PM
 
9,313 posts, read 13,844,848 times
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Kefir, those 14 allowances would actually be negative allowances. It's to handle the fact that tax brackets are determined based on household income. So if they both worked in NY and she made $100,000 and he made $60,000, each would put down 14 _fewer_ allowances than they'd otherwise get.

However, since only she works in NY, his income doesn't matter at all for NY tax purposes. I think... I'm not an accountant or tax attorney, just another NJ commuter.
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Old 10-13-2011, 06:23 AM
 
Location: Manhattan
20,134 posts, read 26,416,255 times
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Quote:
Originally Posted by nybbler View Post
Kefir, those 14 allowances would actually be negative allowances. It's to handle the fact that tax brackets are determined based on household income. So if they both worked in NY and she made $100,000 and he made $60,000, each would put down 14 _fewer_ allowances than they'd otherwise get.
nybbler, I understand.
One takes extra exemptions so that the amount withheld more closely balances withholding with actual tax liability. It gets more into the "take-home" amount.
I am cautioning against taking too many of them lest one winds up OWING NY State a large amount at tax time...owe too much and penalties are applied. The law rrequires withholding or estimated payments to reasonably match the taxes owed.

Unless one has an IMMENSE amount of deductions (like huge mortgages and real estate taxes) from my experience taking 14 exemptions from withholding will almost ALWAYS be excessive...unless of course they have 12 KIDS

Best is trial and error...she should take 2 or 3 deductions and see how close the match is. Unless income is highly variable you can do a rough calculation and get pretty close (last year I hit partner's number within $5.)
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