WAGE TAX: New resident in Bucks County, Working in Philly (Philadelphia: credit, income)

[mPa1212]

I had moved to lower Bucks county mid last year. I need some clairification on the wage tax that Phila. collects. Since I live outside the city, but work in the city, I pay the 3.xx%, compared to the 4.xx%, right?

But my employer is taking out the full resident 4.xx%. I assume that I will owe the locals the 1%, but they are not taking this out. How does this work with tax season?


Help?

Thanks!

[BPP1999]

Your employer should only be taking out the non-resident rate, not the resident rate, if you are a Bucks County resident.

I assume you are talking about a Lower Bucks municipality 1% income tax or something like that, right? If you pay the Philadelphia wage tax, you do not need to pay the 1% as well. There's a spot on the local form to indicate that you are taking a credit against the 1% rate.

[mPa1212]

So if they were taking out the non resident rate, even though its a lower rate, I do not have to pay local for Bucks?

[BPP1999]

Correct, because the nonresident rate is still higher than the local Bucks earned income tax rate.

[mPa1212]

goodie! looks like i overpaid, guess its going to be like pulling teeth to get it back, huh!

thanks for your help