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Posted by Joe on December 1, 2006, 9:28 pm
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I just noticed today that my wife's paycheck deductions never
changed from NY State when we move to CT 4 months ago. She
called her HR dept and they told her that her office in is
NY State so she still has to pay NY income tax. My HR
department changed my income tax to CT and my office is in
NY State. Which HR department is right? I've always been
under the assumption that you pay income taxes in the state
you live not the state you work. If it is the state we live
how does my wife rectify the fact that she has been paying NY
taxes for the past 3 months?
Moderator:
And you expected the HR folks to know the answer? Either
call Payroll or wait for Katie Jacques to post the answer.
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Posted by Missy on December 3, 2006, 3:46 pm
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Joe wrote:
> I just noticed today that my wife's paycheck deductions never
> changed from NY State when we move to CT 4 months ago. She
> called her HR dept and they told her that her office in is
> NY State so she still has to pay NY income tax. My HR
> department changed my income tax to CT and my office is in
> NY State. Which HR department is right? I've always been
> under the assumption that you pay income taxes in the state
> you live not the state you work. If it is the state we live
> how does my wife rectify the fact that she has been paying NY
> taxes for the past 3 months?
>
> Moderator:
> And you expected the HR folks to know the answer? Either
> call Payroll or wait for Katie Jacques to post the answer.
Missouri doesn't care where you live, they want their tax
money. We live on the IL-Mo border and a lot of people live
in IL and work in MO. IL gives a credit of tax paid to other
states so the taxpayer does not have to pay in both states.
I will yeild to Katie for the answer to the NY-CT question.
Missy Doyle
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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Posted by Phil Marti on December 3, 2006, 3:46 pm
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> I just noticed today that my wife's paycheck deductions never
> changed from NY State when we move to CT 4 months ago.
I assume you'll find a nice way of suggesting she might get
a little more curious about where her money is going.
> She
> called her HR dept and they told her that her office in is
> NY State so she still has to pay NY income tax. My HR
> department changed my income tax to CT and my office is in
> NY State. Which HR department is right?
I don't know about NY and CT. Not all states are
reciprocal, e.g., MO and KS. While you're waiting for an
answer here (that you should confirm anyway), check either
state's instruction book.
If it turns out that she doesn't owe NY tax for this period
she may be able to get the withholding credited to CT *if*
it can be done before the end of the year. Otherwise you
just resolve it when you file, getting a refund from NY and
paying CT. (Your liability is based on your residency, not
on which state the employer withheld for.)
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Don Priebe on December 3, 2006, 3:46 pm
Please log in for more thread options <Lived and worked in NY, moved to CT but still works in NY,
company still withholding NY tax>
NY will tax you on any income you earned while you were a
resident of NY and also from sources in NY while you lived
elsewhere. Since you moved out of NY in 2006, you will file
an IT-203 (Part year resident return) instead of an IT-201
(Resident return). The IT-203 will ask for information on
your total federal income, the portion of that earned while
you were a resident of NY, and your wages while you were
working in NY but living in CT. The tax being withheld will
be applied to your calculated NY tax and you will either get
a refund or have to pay more in.
(If CT is like NY)
CT will also tax you on the income you earned while a
resident of CT working in NY, but give you a credit based on
what you actually paid to NY for that same income. This
might be the year to have your taxes prepared by a local CT
preparer who is undoubtedly familiar with this situation.
<< wait for Katie Jacques to post the answer. >>
An excellent suggestion!
--
Don EA in Upstate NY
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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Posted by Katie on December 3, 2006, 3:46 pm
Please log in for more thread options Joe wrote:
> I just noticed today that my wife's paycheck deductions never
> changed from NY State when we move to CT 4 months ago. She
> called her HR dept and they told her that her office in is
> NY State so she still has to pay NY income tax. My HR
> department changed my income tax to CT and my office is in
> NY State. Which HR department is right? I've always been
> under the assumption that you pay income taxes in the state
> you live not the state you work. If it is the state we live
> how does my wife rectify the fact that she has been paying NY
> taxes for the past 3 months?
>
> Moderator:
> And you expected the HR folks to know the answer? Either
> call Payroll or wait for Katie Jacques to post the answer.
Checking in ... <G>
If you work in NY state, you are subject to NY tax on all of
your earnings (even if you perform some of your work at your
home in Connecticut). Your wife's employer is correct to
withhold NY tax. Your employer should be doing the same.
You will end up overpaid to Connecticut and underpaid to New
York.
Actually, you pay tax to BOTH the state where you live AND
the state where you work. This is a universal rule unless
there is a reciprocal agreement between the two states
involved, or one or both states do not impose comprehensive
individual income taxes. (New York does not have reciprocal
agreements with any other states.)
The state of your residence taxes all of your income,
regardless of source. A state where you are a nonresident
can tax only your income from sources within that state.
Income from personal services (e.g., employment) has its
source where the services are performed. So the state where
you work will tax your income from services performed there.
You and your wife will file a part-year resident return with
NY and report all of your income for the part of the year
when you were residents, plus your NY source earnings (and
any other NY source income, e.g. income from real or
tangible personal property in NY) for the part of the year
when you were nonresidents. You will also file a part-year
resident return with Connecticut, reporting all of your
income from the time you became residents, including your NY
earnings. Connecticut will give you credit for the tax you
pay to NY on your NY earnings AFTER the date you became a
Connecticut resident, limited to the proportion of your
Connecticut tax liability that relates to that income.
You may want to get professional help in doing your returns
for this transition year, which can get pretty
complicated--and do-it-yourself software, e.g. Turbo Tax,
doesn't always handle these situations correctly without an
override.
Katie in San Diego
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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