Effective Tax Rate in NYC

Question

Hi guys! I will be starting my IB job this July. I am a little confused with how bonuses are treated, tax-wise. I will be working in NYC, making 85k in salary, 50k (estimated) in bonus, and 10k in sign-on. It would be great if someone could explain to me the breakdown of taxes, for this income. I am trying to calculate my effective tax rate for my entire compensation. Thanks in advance for your help!

Eddie Braverman · Accepted Answer

New York Has Highest Taxes in the Nation (Originally Posted: 04/11/2009)

Not really news to those of you unfortunate enough to live there, but New York took top honors once again with a flurry of new taxes. But there's plenty of rich guys left to pay, right?

According to Census Bureau data, over the past decade 1.97 million New Yorkers left the state for greener pastures -- the biggest exodus of any state. New York City has lost more than 75,000 jobs since last August, and many industrial areas upstate are as rundown as Detroit.

Bumblebtuna_analyst · Answer

Your bonus is treated as ordinary income. So your effective bracket would be whatever bracket 145k for the year is in. Your bonus may get taxed more up front because of payroll software, but you will get the remainder back when you file your taxes. Just based off a quick google search, your effective tax rate should be a little over 30% all in which equates to like 44k.

FellowTraveler · Answer

I'm not an accountant or tax lawyer, but I'm pretty sure that this is bad advice. If you work in NYC but claim residency in Florida, New York State is going to be all over you, demanding receipts, lease agreements, utility bills, travel records, or anything else you can produce to demonstrate that you spent more than 6 months and 1 day in Florida / outside of NYC. Which you're not going to be able to do. Best case scenario you end up paying your NYS taxes and a stiff penalty. Worst case you are charged for tax evasion.

twobitpirate · Answer

NYC Tax question (Originally Posted: 03/04/2012)

Fellow prospective monkeys/monkeys who interned in NYC last year,

I have scoped out some past threads but have not been satisfied with the number of different opinions.

For a short internship ~ 10 weeks in 2011, are we considered a Part - Year Resident for tax purposes and thus taxed at the local (NYC) level. This is of course assuming we are from states outside NY.

I am about to file my taxes claiming non-residency for NYC and NY State.

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Effective Tax Rate in NYC

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Effective Tax Rate in NYC

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