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emindrutiu
Level 1

I move to OH but still working for NY. My husband is 63 on SS disability, do I have to pay tax for both states and is my husbands SS disability will be taxed at all?

 
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TomD8
Level 15

I move to OH but still working for NY. My husband is 63 on SS disability, do I have to pay tax for both states and is my husbands SS disability will be taxed at all?

If your move to Ohio was for your own convenience (as opposed to being transferred by your employer to a bona fide office in Ohio), then your income from that remote work remains taxable by NY (as well as by your new resident state of OH).  In that situation you'd be able to claim a credit on your OH return for the taxes paid to NY, so you wouldn't be double-taxed.

 

Whether or not your husband's SS disability is taxed on your federal return will depend on your total income from all sources.  On a joint return, SS starts to become taxable at a combined gross income (including Social Security) of $32,000.

 

Neither New York nor Ohio taxes Social Security benefits.

 

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

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Hal_Al
Level 15

I move to OH but still working for NY. My husband is 63 on SS disability, do I have to pay tax for both states and is my husbands SS disability will be taxed at all?

 If you work outside NY as a job requirement, you are only subject to New York State income tax on the days you actually work in New York. But if you work outside New York for your own convenience, you are subject to New York State income tax on all your income. Pennsylvania, Nebraska, Delaware and Arkansas have the same rule*. 

For guidance see: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html

Here's a link to New York's memorandum on its "convenience of the employer" tax doctrine regarding non-resident telecommuters: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

 

On a joint  federal return, SS (including disability) starts to become taxable at a combined gross income (including HALF of his Social Security) of $32,000.

 

* Massachusetts is a newcomer to the list, as it adopted a temporary measure to continue taxing the wages of workers residing in New Hampshire (and the above states) amid the pandemic.

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4 Replies
TomD8
Level 15

I move to OH but still working for NY. My husband is 63 on SS disability, do I have to pay tax for both states and is my husbands SS disability will be taxed at all?

If your move to Ohio was for your own convenience (as opposed to being transferred by your employer to a bona fide office in Ohio), then your income from that remote work remains taxable by NY (as well as by your new resident state of OH).  In that situation you'd be able to claim a credit on your OH return for the taxes paid to NY, so you wouldn't be double-taxed.

 

Whether or not your husband's SS disability is taxed on your federal return will depend on your total income from all sources.  On a joint return, SS starts to become taxable at a combined gross income (including Social Security) of $32,000.

 

Neither New York nor Ohio taxes Social Security benefits.

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Hal_Al
Level 15

I move to OH but still working for NY. My husband is 63 on SS disability, do I have to pay tax for both states and is my husbands SS disability will be taxed at all?

 If you work outside NY as a job requirement, you are only subject to New York State income tax on the days you actually work in New York. But if you work outside New York for your own convenience, you are subject to New York State income tax on all your income. Pennsylvania, Nebraska, Delaware and Arkansas have the same rule*. 

For guidance see: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html

Here's a link to New York's memorandum on its "convenience of the employer" tax doctrine regarding non-resident telecommuters: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

 

On a joint  federal return, SS (including disability) starts to become taxable at a combined gross income (including HALF of his Social Security) of $32,000.

 

* Massachusetts is a newcomer to the list, as it adopted a temporary measure to continue taxing the wages of workers residing in New Hampshire (and the above states) amid the pandemic.

emindrutiu
Level 1

I move to OH but still working for NY. My husband is 63 on SS disability, do I have to pay tax for both states and is my husbands SS disability will be taxed at all?

Thank you for the answer! Now if our total income is $52000 do I have to pay the same tax rate for the $32,000 and the extra $20,000 ? 

Hal_Al
Level 15

I move to OH but still working for NY. My husband is 63 on SS disability, do I have to pay tax for both states and is my husbands SS disability will be taxed at all?

Q. If our total income is $52000 do I have to pay the same tax rate for the $32,000 and the extra $20,000 ? 

A. Simple answer: Yes.  Both your salary and your spouse's SSDI are "ordinary income" and taxed at your marginal tax rate.

 

But, taxes aren't simple.  The taxable portion of SS is taxed as ordinary income, but not all of the SS is taxable. 

Social security only becomes taxable when added to sufficient other income. If you are otherwise required to file a tax return, you do need to enter it in TurboTax (TT). TT will determine the taxable portion.

Social security (including SSDI) becomes taxable when your income, including 1/2 your social security, reaches:

Married Filing Jointly(MFJ): $32,000

Single or head of household: $25,000

Married Filing Separately and lived with your spouse at any time during the tax year: $0

After TurboTax (TT) calculates the taxable portion of SS, it puts the total amount of SS on line 6a of form 1040 and the taxable amount on line 6b (2020). TT also produces a worksheet  to show how the taxable amount is calculated. Although most people pay tax on 85% of their SS. it can be less for lower income taxpayers.

 

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