Living in Philly and working in NYC - what does this mean tax wise (York: coupon)

[crosado146]

Hello,

Just wanted to know if any one can provide me with some clarification or advise. I am looking to move to Philly either Center City or around the vicinity or NEPA. But I will be commuting to New York for work.

How will this affect the way taxes are withheld from my paycheck and when I file my taxes? I keep hearing the PA residents don't pay NY taxes, but can not find any valid info on this

Thanks for your input and help

[roxxy38]

Originally Posted by crosado146

Hello,

Just wanted to know if any one can provide me with some clarification or advise. I am looking to move to Philly either Center City or around the vicinity or NEPA. But I will be commuting to New York for work.

How will this affect the way taxes are withheld from my paycheck and when I file my taxes? I keep hearing the PA residents don't pay NY taxes, but can not find any valid info on this

Thanks for your input and help

I dont think that is true (about PA residents not paying NY taxes). I live in Pa. but moved here in July and started getting unemployment out of NY and will have to pay taxes to NY from it. You really need to speak to an accountant. I would not rely on what others say. If I would of went to an accountant before making moves I would of saved money (i am not talking about the unemployment). So if I were you I would sit down with an accountant and let him tell you the best way to go. It might be worth the fee!!!

[marchawg]

I live in PA and work in NYC, and I can tell you that you do pay taxes for NY state. I can't speak for Philly taxes, but the tax I pay from up here is pretty decent.

[crosado146]

thanks for the info to both of you - it is really helpful

[mathjak107]

you pay ny taxes first and those are subtracted out of what you would owe pa.. if anything is left over pa gets it... new york and especially nyc have such high taxes usually there is nothing left over for pa.

the above is how it works for earned income,,,, un- earned income is different, money earned on investments or bank interest isnt taxable by ny if your a pa resident.

[blip]

Originally Posted by mathjak107

you pay ny taxes first and those are subtracted out of what you would owe pa.. if anything is left over pa gets it... new york and especially nyc have such high taxes usually there is nothing left over for pa.

the above is how it works for earned income,,,, un- earned income is different, money earned on investments or bank interest isnt taxable by ny if your a pa resident.

You will pay NYS taxes, but not NYC taxes. You'll typically have to file in both NY and PA, and they'll each get some of it as mathjak states, depending on # days worked where (eg if you work PT from home.) You'll also be responsible for any local wage taxes where you live in PA.

Of course, an accountant will help you get a better estimate, but from my brief exp, it'll roughly work out to your NYS tax rate + you local municipality's wage tax, if any. That's for your wages.

And yeah, PA will tax your investment income, not NYS, and your municipality typically will not tax this either.

[phillyzoo]

If you are living in Philly, be sure to pay your resident wage tax. This is tax that anyone who lives or works in Philly is responsible for. You will need to get a coupon book from a tax accountant in order to make quarterly payments or you will end up owing the full tax bill at the end of the year. In my experience, most, but not all, NY based companies do not allow for you to take out taxes for your philly wage tax.

[crosado146]

Thanks, will do

[sp2007]

I posted a similiar question on the main PA forum.

What if I live in Wyoming or Susquehanna county and worked in Binghamton? Would I pay state income tax to NY and then get credit towards my PA state tax? What about local taxes? Do I get taxed by Broome County or something as well as my resident PA county?

Thanks