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Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2421
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I work in new york but live in pa. Im paying taxes in n.y.c

Customer Question

I work in new york but live in pa. Im paying taxes in n.y.c but dont live ther.The taxes im talking about is state and local. I brought m y house in 2007 and in nys i payed for taxes in 2008 and now in 2009.I lived in pa for about two years now i will be working in nyc for a little whils and when i transfer ill be in pa.I want to chaNGE MY TAX PAPERS FROM nys to pa and get rid of local and city taxes.How can i do this
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.

Hello Jr,


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?



Customer: replied 7 years ago.
yess but its the same employer. Im getting a transfer within the company.See im paying for taxes in nyc and state because i use to live there.Now i live in pa.but still paying taxes in nyc and nys.I was told that i was not surpose to be paying any taxes in nyc and nys.I dont know if its true or not. Im trying to find out if i need to change my tax forms from nyc and nys to pa only
Expert:  Merlo replied 7 years ago.

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.


If this was helpful please press the Accept button. Positive feedback is also appreciated.


Thank you Jr



Customer: replied 7 years ago.
Oh i see so i have to pay for the state and local and resident taxes also?
Expert:  Merlo replied 7 years ago.

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



Customer: replied 7 years ago.

ok but what about the resident taxes for people who live there? Im paying that too?


Expert:  Merlo replied 7 years ago.

Hello again Jr,


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?



Customer: replied 7 years ago.
yes and also resident taxes.I us to live there about two years ago.When i use to live in nyc i paid state taxes local taxes and what they call it is resident taxes for people who live in that i moved i told my employer that i dont live in nyc anymore and they still take out for resident taxes you know.
Expert:  Merlo replied 7 years ago.

Hello again Jr,


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.


Thanks Jr



Customer: replied 7 years ago.
ok thanks for your help.
Expert:  Anne replied 7 years ago.
HiCustomerbr />
Thank you for using justanswer. There is generally no credit for local taxes available from one state to another. The only way to get any type of tax relief for local taxes is to file the form as a non resident and get the refund that way. You should absolutely contact your employer and advise them to stop withholding NYC resident taxes immediately, but since those taxes will have already been paid to the municipality, your employer can not readily get those taxes back either. Your only option is to file the form. You may certainly request that your employer pay for the filing, especially if you have previously asked them to stop withholding NYC tax, and they might work with your that way, however, if you are still working in the city, your employer may be required to withhold NYC taxes since that is where his business is located and where you work, but they should withhold at the lesser, non resident rate.

I hope this helps.

Edited by Anne on 11/17/2009 at 2:02 AM EST
Customer: replied 7 years ago.
So your saying that i still have to pay taxes in new york for the state and the city? I was told by another tax preparer that i wasnt surpose to pay any taxes in new york but to pay the taxes in pa.Thats what i was told.If they changed the tax law can you check and see if there are any changes.They told me that there are changes with the way they do the taxes now. Can you check into that please and let me know? Thank you