What's deal with summer intern taxes?
Current incoming summer analyst living in Westchester (my long term my residence is another state though) but working in Greenwich/Stamford. I'm trying to make sense of how intern taxes work. I will be making about $9-10K this summer without taxes and don't know which forms to fill, which state I'll be taxed at, and what my tax rate will be. Can anyone give me some ideas? Don't what to make any mistakes filing my taxes. Thanks in advance.
You’ll get taxed as if you made that salary all year. Then you’ll get a good tax return.
If you're only living in NY for ~90 days and not working there, you aren't a NY resident and don't need to file a NY tax return (this will change if you return to this job and live in Westchester next summer btw... and you will pay far higher taxes in NY, so live in CT)
Only thing you need to fill out now is a W4. The firm will likely give you this on day 1 of the internship. Google how to fill it out, but they are pretty simple if you are single. Make sure you put your permanent home residence (not temporary) as your residence.
Come tax season, you will file a federal return, CT tax return, and home state tax return. Your home state will credit the state tax you paid to CT, so you'll owe them either nothing or almost nothing. Highly recommend finding some CPA (small 1 or 2 person shop, not H&R Block) to do all of this for you, should cost like $100-200 and all of the complicated paperwork is taken care of.
You will pay taxes as if you made the annualized salary of whatever your paycheck implies - so your tax withholding will be quite high, and then you will get a lot of it back with your tax return
Thanks for the detailed explanation. Why do I need to hire a CPA to do those three forms? Also, I'm listed as my parents dependent for tax purposes, so will I need to file separately from now on?
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