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How do taxes work if you live in NY and work in CT?

By Matthew Sanders |

If you live in NYC but work in CT, you will need to file both a CT nonresident state income tax return (to report only your CT sourced income) and an NY/NYC resident state income tax return to report all income (including CT sourced).

Do you have to pay NY state tax if you live in CT?

If you live in CT and have a job in New York, where do your state income taxes go? Since NY has a higher state tax rate than CT, do you get the amount of NYS taxes paid in excess of CT back as a credit? You will have to file NY State for your NY related income and CT State for other income.

Does NY and CT have a reciprocal agreement?

As a practical matter, federal law prohibits two states from taxing the same income. As an example, New York can’t tax you if you live in Connecticut but work in New York, and you pay taxes on that earned income to Connecticut.

Can you live in NY and work in Connecticut?

Yes, You will get a credit on you CT resident tax return for your NY nonresident state taxes. You will need to file as non-resident for NY (for your NY source income only). You will also need to file a CT resident state tax return (for all income from all sources including NY).

What is a good salary in Connecticut?

While ZipRecruiter is seeing salaries as high as $126,329 and as low as $21,139, the majority of salaries within the Above Average jobs category currently range between $31,204 (25th percentile) to $61,905 (75th percentile) with top earners (90th percentile) making $75,495 annually in Connecticut.

Can you work in NY and work in CT?

You will want to work on your non-resident NY state tax return first. You will then take a tax credit from your non-resident NY return on your resident CT state tax return. (Please note that you will only get a tax credit for your NY taxes up to the amount of CT taxes that would have been paid if the income was earned in CT).

Do you have to file NY state taxes if you live in CT?

You will also need to file a CT resident state tax return (for all income from all sources including NY). You will get a state tax credit in CT for the NY state taxes the your paid on your nonresident NY state tax return.

Do you get NY state tax credit if you work in CT?

You will get a state tax credit in CT for the NY state taxes the your paid on your nonresident NY state tax return. You will want to work on your non-resident NY state tax return first. You will then take a tax credit from your non-resident NY return on your resident CT state tax return.

Can a Connecticut resident work in another state?

The Connecticut resident will receive credit from Connecticut for income tax paid to the other state on income earned for services performed in the other state. The credit allowed will be the lesser of the tax paid to the other state or the tax which Connecticut imposes on the resident’s out-of-state wages.