I live and work in NC, but my company is in NYC (I'm contracted out to another company). My employer is taking NY taxes out of my check... but what happens come end of year tax time?

[Edited on December 9, 2010 at 7:39 PM. Reason : .]

12/9/2010 7:39:04 PM

nvm didn't read. I don't believe you owe the state of NY anything if you are indeed a contractor but I could be wrong.

[Edited on December 9, 2010 at 7:45 PM. Reason : a]

12/9/2010 7:43:56 PM

you will end needing to file a NY income tax return as a nonresident; you should get all/most of taxes paid back.

also you will need to file and pay NC income taxes.

12/9/2010 7:45:01 PM

Yeah it sounds like you'll get back all the NY taxes but end up having to hand them over to NC Good thing NY taxes are more than NC's?

12/10/2010 9:07:26 AM

This is from the 09 NY tax forms:

Quote :

"If you were a nonresident of New York State, you are subject to New York State tax on income you received from New York State sources in 2009."

http://www.tax.state.ny.us/pdf/2009/inc/it203i_2009.pdf

I think you will get credit in NC for the taxes you paid in NY but I'm not sure. I would hope you wouldn't have to pay both .

12/10/2010 10:49:21 AM

there's some wonky laws with NY with how many days in the year you actually physically worked in the state too..

[Edited on December 10, 2010 at 10:52 AM. Reason : e]

12/10/2010 10:52:19 AM

i live in NC but am employed in MO

you wind up having to pay taxes in both states, i got stuck with a 3k bill from NC and now i have to pay quarterly estimated state income taxes and it sucks

12/10/2010 3:59:16 PM

ffffuuuuuuuuuuuuuuu. maybe I should talk to my financial guy

12/12/2010 12:21:57 AM

^probably a good idea.

12/12/2010 10:25:01 AM

Quote :

"you wind up having to pay taxes in both states"

wtf? thats horrible.

12/12/2010 10:26:27 AM

DOUBLE TAXATION!!!!!!

12/12/2010 10:46:07 AM

actually let me be a little more accurate on that


there is a tax difference between NC and MO and I had to pay the difference to NC, not the whole thing. Depending on the tax levels of NY and NC, you may not be liable for any extra taxes.

sorry to scare you lol

12/13/2010 12:48:16 AM

aaand now that i read the title a little more clearly, if your place of employment (where you physically work) is in NC and you live in NC, I don't see why your employer being in NYC would make u pay taxes there (im not a CPA just going w/what i know as a nobody).

e.g. you work for walmart on glenwood but your paychecks are coming from bentonville, HQ of Walmart. You aren't subject to any arkansas taxes.....


just a thought, hope it helps

12/13/2010 12:51:04 AM

^thanks. the parent company is in NYC and NYC only; I'm contracted out to a NC company.

12/13/2010 7:12:33 AM

here's to hoping they 'forget' to submit your 1099's!

[Edited on December 13, 2010 at 5:44 PM. Reason : ]

12/13/2010 5:43:49 PM

what if you worked for Honda? would you have to pay japanese income tax?

12/13/2010 5:57:02 PM

So let me get this straight. You work for a contracting company based in NY where you're contracting for an NC company. Your paycheck comes from the NY contracting company with typical withholdings (SS, Medicare, fed tax, and NY state income tax instead of NC tax). If this is true I believe what I said before is right and you will get credit for taxes paid to NY. If you look at page 5 of this PDF you'll see:

Quote :

"Part 1. Credit for Income Tax Paid to Another State or Country - N.C. Residents Only You must attach a copy of the return filed with the other state or country and proof of payment."

http://www.dornc.com/downloads/D400_D400TC.pdf

^The thing is that if I'm assuming right, the company he technically works for is in NY and has no presence in NC other than the contractors (or NY based employees technically). The NC company is a separate entity that pays the NY company for staffing. Honda on the other hand actually has plants, dealerships, etc that are operated (and have a presence in the US). This situation is just like somebody that lives near the NC borders and commutes/works in another state like VA or SC.

[Edited on December 14, 2010 at 10:13 AM. Reason : ]

12/14/2010 10:11:02 AM

tax guy says I'll file non-resident in NYC, get credit for NC taxes, and then get back the difference between the tax rates via tax return.

another tax question... and i have no idea why I was asked to do this...

I need to know how much to increase my salary in order for the post-tax amount to cover my benefits (which I pay for out of pocket).

So let's say I earn $50,000/year (pre-tax). I need my salary increased so that, post-tax, I am getting $350/month more to cover benefits. Anyone?

1/4/2011 7:39:30 PM

nvm, figured that out... I think.

anyways, I was looking at a tax calculator... which calculated my taxes & net pay very closely... but I compared what my NY taxes/pay were to what they'd be in NC... and it showed my NC taxes would be slightly higher!

1/4/2011 9:18:47 PM