Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted May 24, 2023 4:16:52 PM

Residing in NY, Working in CT

I work in CT but live in NY. CT deducts taxes from my paycheck but NY does not. How do I complete the NY W4 without them withholding the full amount of taxes and getting double withholding?

0 1 322
1 Replies
Employee Tax Expert
May 24, 2023 4:25:21 PM

Hi lavender45,

 

I hope you are having a great day!  

 

Since you live in one state but works in another you may have tax liability in both states, but typically will receive a tax credit on your NY tax return to eliminate double taxation of that income.

Since you are a full-year resident of New York State and you had income sourced to and taxed by another state, CT,  you may claim a nonrefundable resident credit against your New York State tax. This credit is allowable only for the portion of the tax that applies to income sourced to and taxed by the other taxing authority while you were a New York State resident.

To avoid having too much tax withheld from your paycheck for NY state tax, increase the number of allowances you report on your Form NY-IT-2104 line 1, and 2 if applicable.

 

Once you complete the form, give it to your employer. Then, keep a close eye on your next few paychecks to see how the changes impacted your NY state income tax withholding.

 

I hope this information helps!