Starting as an SA next week... trying to figure out if I can file for NY tax withholding exemption.
The three criteria for exemption listed are:
- You must be under age 18, or over age 65, or a full-time student under age 25 and
- You did not have a New York income tax liability for 2011 and
- You do not expect to have a New York income tax liability for 2012 (for this purpose, you have a tax liability if your return shows tax before the allowance of any credit for income tax withheld).
Pretty obviously meet the first two criteria, not too clear what the third criteria means.
Appreciate the input of anyone who has gone through this process before.
Short answer: no, you don't qualify. You make money as an SA and thus will be liable for taxes. Be sure to bring scans of your ID and SS card or passport as well as a voided check for the obligatory HR processing.
If you earn income in New York State, you owe New York State income tax on that income. New York does not have tax treaties with other states. However, your home state will probably give you the lesser of a tax credit for taxes paid to NY State or a tax deduction on your income in New York, so you will not be double-taxed. Furthermore, as a college student, you can expect to pay about a 4-5% net tax rate after a $7500 standardized deduction, so by the time you are done, you will probably pay less taxes to New York than you would working in your home state.
However, you probably get to avoid NYC resident tax if you do not go to school in NYC and do not have family that lives in NYC.
I am never really sure who these tax-exempt people who receive paychecks are.
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