Heres How Much Taxes When Move NY

The American tax system has often been cited as being complicated, complex, and just downright confusing. But considering that the Federal government employs a whopping 2.1 million civilian workers, it’s no surprise that the bureaucratic paperwork needed to fund all those people and departments must be complicated and complex.

Fortunately, the New York tax system isn’t all that complicated…sometimes. Most of the time, however, people need professional help, which is why tax planning companies in New York are quite popular. Here’s a quick breakdown of how much taxes you need to pay when you move to New York.

Who Has to Pay Taxes in New York?

First, let’s see who needs to pay tax in New York. Contrary to popular belief, you don’t actually need to live in New York for the state government to require you to pay taxes. Generally, you’re required to file for a New York state tax return:

• If you’re a resident and required to file a federal tax return.
• If you’re a non-resident, but you derive your income from a New York-based company.

In general, you’re considered a resident of New York if:

• Your primary residence is in New York, which means you are legally ‘domiciled’ in the state.
• You live in New York state for at least 184 days throughout the year.

If you are a New York resident, you’ll have to file Form IT-201, or the Resident Income Tax Return. New York residents qualify for Form IT-201 if they meet the following requirements:

• You have to file a federal return.
• You did not have to file a federal return but your recomputed federal adjusted gross income plus New York additions was more than $4,000
• ($3,100 if you are single and can be claimed as a dependent on another taxpayer’s federal return).
• You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
• You want to claim any of the refundable or carryover credits available.

Meanwhile, part-time New York residents need to file Form IT-203, the Non-Resident and Part-Year Resident Income Tax Return, if they meet any of the following conditions:

• You are a part-year resident with any income during your resident period or you had New York source income during your non-resident period and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.
• You want to claim a refund of any New York State, New York City, or Yorkers income taxes withheld from your pay.
• You want to claim any of the refundable or carryover credits available.
• You are a part-year resident and you are subject to a separate tax on any lump-sum distributions for your resident period derived from or connected with New York sources.
• You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

For non-residents, they need to file Form IT-203, or the Non-Resident and Part-Year Resident Income Tax Return, if they meet any of the following conditions:

• You are a non-resident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.
• You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
• You want to claim any of the refundable or carryover credits available.
• You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

So How Much Taxes Do I Need to Pay in New York?

The state of New York has a tax rate that ranges from 4% and up 8.82%, depending on your tax bracket.

• If your annual gross earnings do not exceed $8,500, your tax rate is 4%.
• If your annual gross earnings are over $8,500 but not over $11,700, your tax rate is $340 + 4.5% of the excess of $8,500.
• If your annual gross earnings are over $11,700 but not over $13,900, your tax rate is $484 + 5.25% of the excess of $11,700.
• If your annual gross earnings are over $13,900 but not over $21,400, your tax rate is $600 + 5.9% of the excess of $13,900.
• If your annual gross earnings are over $21,400 but not over $80,650, your tax rate is $1,042 + 6.09% of the excess of $21,400.
• If your annual gross earnings are over $80,650 but not over $215,400, your tax rate is $4,650 + 6.41% of the excess of $80,650.
• If your annual gross earnings are over $215,400 but not over $1,077,550, your tax rate is $13,288 + 6.85% of the excess of $215,400.
• If your annual gross earnings are over $1,077,550 and over, your tax rate is $72,345 + 8.82% of the excess of $1,077,550.

Sounds Complicated? Let Us Help You!

Melanin Tax is one of the most trusted tax planning companies in New York, and we earned this distinction through years of hard work, building our knowledge base, and creating a team of experts to help our clients navigate the complicated American tax system. Need more info? Contact Lorraine from Melanin Tax to learn more!