I moved to CT two years ago, but work out of NY. Ever since I moved out of NY I have been paying around $3500 in CT state taxes, which is a lot for me. I am a single filer with zero exemptions. Should I change my exemptions so I can have more deducted throughout the year vs a huge tax bill?
Thank you for the question. Let me start here with this as the general rule:
Because you live in CT and your employer is located in NY, you pay state taxes to CT and NY. NY is one of a few states that taxes nonresidents on income sourced in NY. You will receive a credit on your CT state return for any taxes paid to NY so you are not double taxed on the same income.
Unless you have significant income other then the NY W-2 it is hard for me to imagine that you have much CT tax liability at all due to the credit for taxes paid to NY. See this for a comparison of CT and NY income tax rates for 2024 are:
Connecticut Income Tax Brackets for 2024
Taxable Income (Single Filers)
Taxable Income (Married Filing Jointly)
Tax Rate on This Income
$0 to $10,000
$0 to $20,000
3%
$10,000 to $50,000
$20,000 to $100,000
5%
$50,000 to $100,000
$100,000 to $200,000
5.5%
$100,000 to $200,000
$200,000 to $400,000
6%
$200,000 to $250,000
$400,000 to $500,000
6.5%
$250,000 to $500,000
$500,000 to $1,000,000
6.9%
$500,000 or more
$1,000,000 or more
6.99%
NY income tax rates for 2024 are:
New York Income Tax Brackets and Rates: Single and Married Filing Separately
If Your New York Taxable Income Is Over:
But Not Over:
Your Tax Is:
$0
$8,500
4% of your income
$8,500
$11,700
$340 + 4.5% of the excess over $8,500
$11,700
$13,900
$484 + 5.25% of the excess over $11,700
$13,900
$80,650
$600 + 5.5% of the excess over $13,900
$80,650
$215,400
$4,271 + 6% of the excess over $80,650
$215,400
$1,077,550
$12,356 + 6.85% of the excess over $215,400
$1,077,550
$5,000,000
$71,413 + 9.65% of the excess over $1,077,500
$5,000,000
$25,000,000
$449,929 + 10.3% of the excess over $5,000,000
$25,000,000
—
$2,509,929 + 10.9
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Thank you for answering my question. Sounds like I need to have an accountant review my previous taxes because I have no other income in CT or NY yet still paying an annual $3500 in CT state taxes (and still having NY taxes deducted out of my paychecks). Can accountants review previous year taxes and make amendments if an error was made?
Yes, accountants can generally review prior year returns to look for discrepancies or errors. If you want to look for someone within the TurboTax system, please reach out to our network of Verified Pros. Even if there isn't someone physically located near you, there are many verified pros available to work with you virtually.
Thank you for participating in this event! -- KimberW
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