NY/NYC income tax question

[brewer12345]

Suppose you work in NYC but live in a different state. I know that the wage income will be subject to NY state income taxes. Anyone know for sure if your wage income is also subject to NYC income taxes? I think so, but can't seem to find anything definitive.

[mews]

you betcha!

I switched careers, but when I was doing the payroll and taxes thing, there was the NYC commuter tax - less than the full income tax, but the city wanted their nibble of your money.

mews
who lives and works in tax hell

[LOL!]

I live and work in Texas, but do some consulting in NY each year. My NY income is subject to NY state income tax, so I must file a NY IT-203 each year which is the non-resident income tax form. I can't see how you can't find definite information on this: it's simple, it's definite that NY and NYC will tax your income.

[brewer12345]

Thanks, guys. Probably just wishful thinking on my part.

[soupcxan]

New job prospect, brewer?

[Gumby]

In the years I worked in NYC and lived in CT (2001 - 2007), my income was subject to NY state income tax, but not the City tax. I believe that only people who live in the City pay the City taxes.

[brewer12345]

Quote:

Originally Posted by soupcxan New job prospect, brewer?

Indeed.

[brewer12345]

Thanks, Gumby. Hopefully that is still the operative rule. It has been several years since I lived outside the city while working there, so I wasn't sure what the current situation was.

[Gumby]

This NYC government web page seems to confirm our understanding

Personal Income Tax

[DOCMECH]

Do you mean that your pension was a State Pension. Those are both city and state tax exemp in New York State. There are other states that also do not tax pensions. My Dad retired from NY City but moved to New Jersey and NJ is hitting him for 4%. Hope this helps.

[freebird5825]

Quote:

Originally Posted by DOCMECH ...Those are both city and state tax exemp in New York State...

yes indeed. my federal survivor pension is fully tax exempt in NYS.
so are retired miltary pensions.
any other pension types i missed?

[al_bundy]

Quote:

Originally Posted by brewer12345 Thanks, Gumby. Hopefully that is still the operative rule. It has been several years since I lived outside the city while working there, so I wasn't sure what the current situation was.

depending on your new home budget, NYC property taxes are the best deal. 1/2 compared to the suburbs here. if your kid goes to stuyvesant or you are in one of the good school districts here. otherwise according to US News most of the best high schools in the country are in the NYC suburbs

[mathjak107]

Quote:

Originally Posted by al_bundy depending on your new home budget, NYC property taxes are the best deal. 1/2 compared to the suburbs here. if your kid goes to stuyvesant or you are in one of the good school districts here. otherwise according to US News most of the best high schools in the country are in the NYC suburbs

there only a good deal unless you live here and have to figure in the almost 6% nyc income tax on top of it. people from long island always comment about the low city property taxes but they forget about the city income tax.... and ooooh man in the years i had some large capital gains the city tax was incredible. it was more than alot of salarys

[al_bundy]

when i do my taxes next year i'll check, but in reality i don't think my wife and i pay anywhere close to 6% city tax and we make 6 figures. my in-laws have a legal 2 family home in brooklyn and their taxes are around $3000 for it. it would probably be at least $10,000 in westchester or a lot of NJ towns.

living in NYC the transportation is cheaper as well. subway costs me $81 a month before the tax break for unlimited 30 day cards. in the burbs i'd have to pay close to $300 for train, $81 for subway and then parking on top of that.

it's in the papers that Bloomberg is back at Albany trying to get them to allow NYC to pass a commuter tax again

[mathjak107]

take a look ill bet your at least 5%.. i couldnt believe it when i checked myself

[Gone4Good]

Quote:

Originally Posted by brewer12345 Suppose you work in NYC but live in a different state. I know that the wage income will be subject to NY state income taxes. Anyone know for sure if your wage income is also subject to NYC income taxes? I think so, but can't seem to find anything definitive.

It's called a "commuter tax" and it's been dead since 1999 (which means that out of city "commuters" haven't paid the city tax since then). But like all good things, this may come to an end. To close the NYC budget gap Gov. Bloomberg is trying to revive the dread commuter tax.

Here's an article from today . . . .

Rell vows to fight any NYC commuter tax - The Advocate

[mathjak107]

just looked its actually just under 4%. the amt had brough it up to over 5 for me but it looks like just under 4 for most. so thats almost another 4,000 on 100,000 income to be added to your already existing property taxes.... it dosnt just apply to income so any large capital gains are killer. on a sale of some co-ops we paid 35,000 more in nyc tax then he did living in new jersey .all on the same sale

[al_bundy]

there is a special tax for RE over $1,000,000. forgot if it's a state or city tax. you can get around it by selling the home for less than $1,000,000 and selling the furniture or whatever for the rest

my wife and i have been running the math lately and it's cheaper or same cost to buy a house than a 2 or 3 bedroom co-op. The maintenance fees in most co-ops have gone crazy the last few years. and it's not because of property taxes

[FIRE'd@51]

Quote:

Originally Posted by al_bundy there is a special tax for RE over $1,000,000. forgot if it's a state or city tax. you can get around it by selling the home for less than $1,000,000 and selling the furniture or whatever for the rest

IIRC, when I lived in NY there was a NY state "mansion" tax on homes over $1 million, and it was paid by the buyer, not the seller.

With regard to city vs suburbs property taxes, you need to take into account the schools if you have kids. Many city residents fork out after-tax dollars to send their kids to private schools, while the higher property taxes in the suburbs (which are tax-deductible in most cases) include the cost of "good" schools.

[al_bundy]

that's it, reading the NY Times a few years ago they said a lot more sales were getting hit with that tax

there are a few really good schools in NYC that compare with the suburbs. i know some people that went to private school and i think it was money wasted unless you want your kids to go to a religious school or one of the "elite" schools where you have to be worth $100 million just to apply.

most people think manhattan when they hear NYC, but you can't even see manhattan from most of NYC