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Are you actually changing the place where you will be working from to somewhere inside the state of PA?
Will you be working for a new employer, or for the same employer but at a different location?
Hello again jr,
If you are currently working in the state of NY, then it is correct that you should be paying NY taxes, even though you live in the state of PA. The way state taxes work is this:
You pay state taxes to:
1. The state where you are a resident and
2. Any state where you have earned income
When you work in a different state than where you live, the employer is required to withhold state taxes based on the state where you actually work. So if you are now working in NY, they would withhold NY taxes. At the end of the year you would then file a non residen tax return with the state of NY to report your income from that state.
You would then also file a return with PA since that is your resident state. You would report to PA your income from all states, but then PA would allow you a credit for the state tax already paid to NY.
Once you start working in PA, you will no longer be liable for paying any NY taxes. There should not be any new forms you need to fill out. It is the employer's responsibility to withhold the correct taxes based on the location you are working. So anyone who is working ouf of this location in PA should automatically be having PA tax withheld from their checks, and your NY withholding should stop.
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Thank you Jr
Hello again Jr,
Right now if you are working in NYC, you would be responsibile for paying both NY state taxes and NYC local taxes, but only because that is where you are actually working.
You would report that same income to the state of PA, but they would then allow you a credit for the taxes already paid to NY, so you really should not have any double taxation of that same income. It actually ends up only being taxed in NY because of the credit that PA allows you to claim.
Once you start working in PA, and since you are also a resident of PA, you will only pay taxes and file taxes with that state. And once you make the switch to tne new location in PA, your employer should automatically stop withholding all NY and NYC taxes and start withholding PA taxes only.
If this was helpful please press the Accept button.
Thank you Jr
ok but what about the resident taxes for people who live there? Im paying that too?
I am not quite sure I understand what you are saying.
As I understand it, you are currently working in NYC and they are withholding NY state tax and NYC local tax.
What other taxes are they withholding?
I am going to put your question back on the open board to see if someone here in the forum is more familiar with NY taxes, and possibly they can answer this question for you. If someone posts a response, you will be notified by email.