2020 WFH FT, tax implications
My understanding is you are taxed where you work from. Therefore, are we going to get to keep our signing bonuses taxed at local rate instead of NYC?
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You get taxed according to your residence. If you live in Pennsylvania your job is NYC you will get taxes withheld at the Pennsylvania rate.
EDIT: Disregard this- its actually much more complicated- you should probably defer to a tax professional because each state has different reciprocity agreements and laws regarding this issue.
so if I live in Jersey, but work in NYC. last time I was in the office was February. if I get my stub in July, do I get taxed in NY or NJ?
When you were getting paid what was your residence on file with the firm? If it was a NY apartment then it will be withheld at NY rates- if you changed your address then the withholding should have changed to NJ. In any case, the signing bonuses are usually smaller than the stated amount due to IRS (federal) withholding increasing on "supplemental income"
You should be getting taxed less; you can compare pay slips for your regular salary. From conversations with co-workers with Jersey addresses, they claim to take home more but other comments below say otherwise.
Guessing you can escape the city tax but not that state tax. On a $50k stub, my colleagues said they took home $2-3k more than I did by being based in NJ
This is wrong - it's not just based on residence and that's it.
Any work you perform in NY will be taxed in NY. you get a credit from taxes paid to your residence state (say PA), but with PA at 3% and NY at 8% you still owe a lot of tax to NY. If you were a California resident with a very high tax rate you wouldn't owe much or anything to NY, but most states you will.
My bad- I was thinking of the below case for all of the new analysts starting out virtually. It seems like you will have to file two returns and claim the credit to offset
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