Ive read through numerous other postings here regarding living in CT and working in NY, but I am still a bit unclear based on my situation. I currently live in CT, and work in the state of NY (not NYC). On my paychecks, taxes are withheld for both CT (a smaller amount) and NY. Does this seem right? I thought I would be paying NY income tax, and filing for a resident return there and using that as credit toward by owed CT income tax? Just a bit confused now why I am paying tax in both currently. Any knowledge is hugely appreciated!
Thanks so much! Do you know why it might be that a smaller amount is withheld from my paycheck for CT income tax? Its about 1/2 of what the actual state income tax would be if I was working in CT, so I am just unclear why that is happening
Since NY's tax rates are generally higher than CT's, and since you'll be able to take a credit for the NY taxes on your CT return, most, if not all, of the state taxes you actually pay will go to NY. Your state tax withholdings may be taking that into effect.