Hi - I need some help with a tax question. I will be starting a new job. I live in CT but will be working in New York (not New York City). How will my employer set up my tax situation? Will I have taxes from both states come out of my paycheck? I am worried about this for cash flow reasons.
I will be making $170,000 with the income coming from the State of New York.
I think my employer will set up my taxes so that only New York comes out and I will pay all of my tax to New York and then get a credit from the State of CT on taxes paid to NY and not end up owning taxes to both states?
I am more worried about how this is going to be reflected in my paystubs?
Thank you
@Csenn1988 your employer should only be withholding taxes in NY, which is where you physically work.
You describe the situation correctly: you will file income tax returns in both states, and it's important to complete the NY return first so that the credit can be correctly applied to the CT tax return. Since I imagine that NY taxes are higher than CT taxes, it could work out that nothing is due to CT related to your salary.
@Csenn1988 your employer should only be withholding taxes in NY, which is where you physically work.
You describe the situation correctly: you will file income tax returns in both states, and it's important to complete the NY return first so that the credit can be correctly applied to the CT tax return. Since I imagine that NY taxes are higher than CT taxes, it could work out that nothing is due to CT related to your salary.