Hello - I live in CT but work in NYC.

Forum|Forum|7 years ago
June 4, 2019
2 replies
16 views

My employer only withheld CT state tax. However I believe I need to file for both. Will I owe a huge amount to NY and get a huge refund from CT?

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jtax

Level 10

Basically that is what happens. But there are subtleties. (NY will tax you only on money made in NY, CT will tax you on income you earn worldwide, but give you a credit for tax paid to other states).

You should do the NY non-resident return first because you need to know the amount you owe to NY for the CT credit. That might reduce your CT tax to zero, it might not depending upon the different state rates and deductions and the like.

Here is CT's article on this:

http://www.ct.gov/drs/cwp/view.asp?a=1462&q=266294

Your employer should probably be withholding taxes for NY (place of work) not CT (residence).

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Anonymous

Makes sense but its annoying. Yes i'll speak to them about the withholding. Any idea if because it's a full years worth of state taxes about $8k does this slow down the return from CT? Would like to be able to hand the refund straight to NY.

adamgotlin

Level 2

This makes sense for NY State and CT State, but what about the separate New York City tax? As people who have lived in NYC know, in addition to the state income tax, NYC charges yet another separate income tax. Are individuals living in CT but working in NYC subject to this additional tax as well?