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If you live in Connecticut or New Jersey, but work in New York City, what taxes come directly out of your paycheck? I'm under the impression that in this scenario, no City tax is taken out because it's based on residence. However, New York State tax IS taken out of each check (but not the state tax of either CT or NJ). At year end, as a resident of either CT or NJ you are required to file your state's return, on which you will receive credit for the state tax you paid throughout the year to New York State. Is this correct? Someone tried to tell me they thought that NYC, NYS, AND either CT or NJ (depending on where you live) would ALL be taken out of each respective paycheck.
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