City and State Taxes for NYC???? Working from home. Do i have to Pay?
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Yes, you'll have to pay NYC taxes. You need to talk to an accountant about taking a deduction for a home office, because it's very difficult to prove that it's used exclusively for work.
its a tax horror to deal with when you sell the house too.
I don't believe this is true. If you are a NYC resident, you are taxed on income from all sources. This may not hold true if you are partial-year resident, but that's something to take up with the accountant.
yes you are taxed on monies from all sources everywhere if you are a nyc resident. its all income. thats why the ball players were getting nabbed. they really were nyc residents but claimed florida as their primary trying not to pay ny taxes on the money they make traveling around the country.
Last edited by mathjak107; 11-28-2011 at 02:49 AM..
For the longest time I would recommend someone in the OP's position move to Jersey City or Hoboken and escape City income taxes and pay a dramatically lower New Jersey State income tax while still being able to buzz into Manhattan with ease.
NJ has recently raised its tax rates so the difference is not quite so dramatic but I am not quite sure of the particulars anymore.
edit: I just compared the rates and there's no significant difference anymore except for the City tax bite. So scratch NJ.
It may be easier to escape the City than the State tax: I had friends who for YEARS used their Fire Island house as their primary address avoiding City tax, while maintaining NY apartments most of the year. They were never bothered even though the dumbbest tax employee must realize that nearly ALL addresses on Fire Island are for weekend Summer homes.
It's a horrible thing to have hanging over your head because when the DO hammer you, they hammer you for YEARS of back taxes sometimes even freezing your bank accounts and attaching your property. That's SUICIDE material.
Last edited by Kefir King; 11-28-2011 at 06:14 AM..
I SHOW A BIG DIFFERENCE IN NJ . this doesnt reflect the nyc tax . if this chart is correct there is a major difference in how much goes through at the various marginal rates.
A MARRIED COUPLE IN NEW JERSEY WOULD PAY ON 70K
20-50K 1.75%
50-70K 2.45%
NEW YORK I SHOW
22-26K 5.25%
26-40K 5.9%
40K-70K 6.85
From your charts, which I have no reason to doubt, I deduce something quite different. For one thing the guy is single and earning $150K.
Thus the salient rate in NJ is:
6.37% between 75K and 500K.
and
5.25% between 40K and 75K.
New York's rate of 6.85% between 20K and 200K is admittedly higher, but not so much so that one would make a housing decision based on the difference between 6.37% and 6.85%.
There USED to be a huge difference but no more. The tiny difference in tax rates is MORE than made up for by NJ's gargantuan real estate taxes compared to NY.
If OP moves to NYC honestly as self employed he's going to get murdered by a total tax rate in excess of 50% (counting Social Security and Medicare, Federal State and City income taxes, SUI/SDI, etc.) I recommend he becomes a billionaire or a hedge fund operator and pays FAR less. I would work MIGHTLY hard to keep that Florida rate if humanly possible.
And NEVER win the lottery in New Jersey...they recently raised the state tax on big lottery wins to 10% from the first dollar, the highest in the nation.
Last edited by Kefir King; 11-28-2011 at 08:50 AM..
But its way lower in new jersey up through the marginal rates , yes? i agree though never make a housing decision on rates alone. there are different allowances for different deductions as well if you itemize.
But its way lower in new jersey up through the marginal rates , yes? i agree though never make a housing decision on rates alone. there are different allowances for different deductions as well if you itemize.
just playing with 150k filing single and not figuring any deductions or exemptions but keeping things constant for both heres how they compared.
new jersey 7429.00 in tax
new york 9272 plus about 5-6k in nyc tax which im ball parking off the table for a whopper of over 14k in combined taxes . that is a huge difference. of course nyc has very low property taxes to offset if you own a home here.
the results make sense because my son lives in new jersey and when we sell property the difference i pay and he pays is almost double.
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