Originally Answered: Where do I pay taxes if I live in PA but work in NY? New York will want taxes paid on your NY income (non-resident return) earned in their state. PA will give you credit for taxes paid to New York when you file your PA resident return which should include all income (NY & PA).

Does PA have NY tax reciprocity?

Nonreciprocal States Two of Pennsylvania’s neighboring states do not offer income tax reciprocity: Delaware and New York. This means, for example, a Pennsylvania resident working in one of those states must file a return in that state, pay the tax, and then take a credit on his or her Pennsylvania return.

Are Pa taxes higher than NY?

NY does have a higher tax rate than PA, so it is likely you do not pay PA tax at the time you file your return. However, you do not want to start having PA tax withheld instead of NY tax. NY gets priority as far as who receives the tax first as long as you work there.

What happens if you work in NY and live in PA?

If you live in NY and work in PA, your work income is taxable by both states. If the postal service will only withhold taxes for your work location in PA, you may want to start making quarterly estimated tax payments to NY. That’s because NY’s income tax rate is considerably higher than PA’s.

How to file NY taxes if you work in PA?

First complete your federal return. 2. Then prepare your NY non-resident return. You only show the income that earned while working in NY. You should have had NY taxes withheld from your pay. 3. Next you prepare a PA resident return showing all income, including that which earned in other states.

Why do I get two W2’s in PA?

With the passage of Pennsylvania Act 32 (effective January 1, 2012) the commonwealth, as an employer, withholds and remits local earned income taxes to a single tax collector for all municipalities except Philadelphia. The primary reason for receiving two Form W-2’s is moving into or out of Philadelphia or changing your work

Where do I file state taxes if I Live and work in different states?

Where do I file state taxes if I live and work in different states? If you earn income in one state while living in another, you should expect to file a tax return in your resident state (where you live). You may also be required to file a state tax return where your employer is located or any state where you have a source of income.