I live in Philly, and I'm trying to decide between paid internships in central NJ and Wilmington (Denver: sales)

[philbegas]

So, I'm a student at Drexel who is doing a 6 month paid internship. Relocating is not an option, I'm locked into a year-long lease in south Philly so I guess no matter what I'm going to be paying Philly wage tax (and federal taxes of course) no matter what. This brings me to a few questions.

1. Does Philly tax my gross income, or net after paying other taxes?

2. If I work in Wilmington, DE I have pretty high city + state taxes, but the state tax will be weighed against my pennsylvania state tax right? and since it's higher I probably won't end up paying any PA state tax?

3. If I work in Jersey, the state tax is lower, so I will end up having to pay the difference between the state taxes to PA right?

[Philly246]

I'd go with the better internship..In the end, the difference in taxes means nothing

[PHL10]

I believe college students can claim their parents address as their permanent address which would relieve you of the City wage tax (provided they don't live in Phila.). If you work in NJ, New Jersey has reciprocity with PA so you would pay PA income tax, which is less. I'm not sure about Delaware.

[philbegas]

Apparently since I'm lower income, it doesn't really matter which I go with because at the end of the day I'll be able to deduct up to 10000 in state and local taxes under the new tax plan for 2018

[PHL10]

Originally Posted by philbegas

Apparently since I'm lower income, it doesn't really matter which I go with because at the end of the day I'll be able to deduct up to 10000 in state and local taxes under the new tax plan for 2018

Careful.....that's only your federal tax obligation. Local taxes matter.......you can deduct them because you PAID them.

[CarteBlanche]

Glad to hear the Trump tax plan will help you out. Take the Wilmington Job, buy your gas and everything else that isn't food in Delaware. The lower of fuel and lack of sales tax will help offset you even more. I just filled up my Yukon in DE today, $2.39 at Sunoco.

[Bodie_Bunk]

Your family need to invest in an accountant. There are too many variables. How much are you getting paid and do your parents still claim you as a dependent? Technically you are a full time student enrolled in University. If I recall correctly this should significantly reduce taxes owed on income, particularly if you are a dependent and make 25k or less per year.

[chessimprov]

Unless NJ is offering a lot more or is significantly better, NJ is going to be more painful on the wallet because you have to cross the bridge. Since you'd be going opposite most the traffic, it might be an easier commute though. Also, there might be more options available with taking PATCO to NJ if you plan on commuting via public transportation.

I'd venture that if you're going with public transportation, and if public is relatively easy with NJ, then take that one.
if you're driving, stick with DE unless there's a huge pay gap (doubtful unless maybe you have a real technical major, then possibly moreso)

Also, you're lucky to have two options. Many only end up with one, and sometimes not until real close or past the original deadline.

Another thing you can consider is possibly exchanging your co-op cycle. You'd have to ask your co-op advisor/applicable advisor how that would work.

[thedirtypirate]

Internships are literally just about the expirence. I would do whatever one is offering the best opportunity.

[Finger Laker]

I'm a Drexel grad who took an internship in Wilmington (while living in Wilmington).

Take the job that provides you the best experience and networking.

I honestly can't remember all the tax stuff - at the time I was technically a NY resident, but I earned income all over the place.

It was a mess - a couple year stretch was pretty nasty - started year on winter co-op, went to philly for spring and had some wages - study abroad - came back and worked seasonal in NY through the new year - lived & worked in Denver until March - classes reset and started fall/winter co-op in Bala with some more incidental income earned in Philly when I was in class

However, it didn't really mean anything - the tax impacts were pretty low. What meant a lot more was my last co-op kept me on through graduation working flexible hours and I would have had a good job if I stayed in the city.