Additional question on this same situation. I live in PA ( Bucks County) and work in NYC for about 8 years now. One thing I never figured out is the local earned income tax which here is ( 0.5% of your wages). For the most part my company never withheld this and i just never filed anything for this because I thought it was only for peiple living and working in Bucks County but now I am hearing mixed messages on this. Also if I am liable to pay the local country tax, can the NY state taxes I pay ALSO be applied as a credit towards this local tax in addition to the credit i get towards the PA state tax?
