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Phoboy75
Level 1

Moving From PA to NY but starting a new remote job in PA

Hello,

 

I recently moved to Brooklyn to be with my girlfriend and starting a new job at the end of October based out of Moon, Pennsylvania. What will this mean for my tax return for 2021?

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Accepted Solutions
Opus 17
Level 15

Moving From PA to NY but starting a new remote job in PA

As a resident of New York, you are required to pay NY state income tax on all your world-wide income, even if it comes from an out of state company.  That's to pay for all the benefits of living in New York (roads, schools, etc.).  Since you live in New York City, you can expect to pay NYC income tax as well.  You should have your employer withhold NY state and city taxes from your paycheck and not PA taxes. 

 

If you moved from PA to NY in the middle of the year, you will file a part-year tax return for PA and a part-year tax return for New York.  Turbotax will ask you to allocate your income to each state -- you have to tell Turbotax how much income from each job, and each other type of income, was paid to you when you were a resident of PA and how much income was paid when you were a resident of NY.  This can be simple, for example, 100% of your income from a former job would be PA income, and 100% from the new job would be NY income, assuming you started the job after moving to NYC.  It might be more complicated if you have other income such as from stocks, you can allocate that based on the percentage of time you lived in each state. 

 

If you had too little tax withheld in one state, you will owe an extra payment when you file your return and if you had too much withholding, you will get a refund. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

2 Replies
Opus 17
Level 15

Moving From PA to NY but starting a new remote job in PA

As a resident of New York, you are required to pay NY state income tax on all your world-wide income, even if it comes from an out of state company.  That's to pay for all the benefits of living in New York (roads, schools, etc.).  Since you live in New York City, you can expect to pay NYC income tax as well.  You should have your employer withhold NY state and city taxes from your paycheck and not PA taxes. 

 

If you moved from PA to NY in the middle of the year, you will file a part-year tax return for PA and a part-year tax return for New York.  Turbotax will ask you to allocate your income to each state -- you have to tell Turbotax how much income from each job, and each other type of income, was paid to you when you were a resident of PA and how much income was paid when you were a resident of NY.  This can be simple, for example, 100% of your income from a former job would be PA income, and 100% from the new job would be NY income, assuming you started the job after moving to NYC.  It might be more complicated if you have other income such as from stocks, you can allocate that based on the percentage of time you lived in each state. 

 

If you had too little tax withheld in one state, you will owe an extra payment when you file your return and if you had too much withholding, you will get a refund. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

Phoboy75
Level 1

Moving From PA to NY but starting a new remote job in PA

Thank you, Opus. I will reach out to my employer to withhold NY state and city taxes from your paycheck and not PA taxes.

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