No. You don't necessarily have to live in New York to pay New York state tax. Premier investment & rental property taxes. $2,494,871 plus 10.90% of the amount over $25,000,000. Good news: You can, check the status of your state tax refund, If you cant afford your tax bill and owe $20,000 or less, New York offers. You'll want tax-free accounts like Roth IRAs and tax-deferred accounts like 401(k)s. Some retirees do handiwork or become self-employed in some other way when they find themselves with time on their hands. You may have extra paperwork if you were living in New York City or Yonkers, since those cities assess local income tax on top of state tax. On occasion, policymakers have proposed fixing this inequity by eliminating or reducing the interest deductibility for businesses. Learn More. Here's why: NYC only taxes the NYC resident working in NYC. Think interest and dividends from investments, alimony, and capital gains. Many or all of the offers on this site are from companies from which Insider receives compensation (for a full list, Our stories are reviewed by tax professionals to ensure you get the most accurate and useful information about your taxes. For a list of what does and does not constitute New York source income, plus other information, see: If you are a nonresident whose primary office is in New York State, your days telecommuting during the pandemic are considered days worked in the state unless your employer has established a bona fide employer office at your telecommuting location. There's a question asking me if I payed the Yonkers resident tax, and I said no because I don't have any w-2's from Yonkers. Retirement Plan FAQs Regarding Contributions - Are Retirement Plan Contributions Subject to Withholding for FICA, Medicare or Federal Income Tax? If you maintain a permanent place of abode in Yonkers and spend 184 days or more in Yonkers, you are considered a Yonkers resident. "Topic No. Think Again, http://dailysignal.com/2012/02/22/obama-corporate-tax-reform-a-sugar-coated-harmful-tax-hike/, http://finance.yahoo.com/bonds/composite_bond_rates, http://www.heritage.org/research/reports/2013/06/the-big-choice-for-jobs-and-growth-lower-tax-rates-versus-expensing, http://www.heritage.org/research/reports/2015/04/a-tax-reform-primer-for-the-2016-presidential-candidates. . Enrolled Agent since 2008, Intuit Tax Expert since 2011. Federal tax. NYC Department of Small Business Services. Earn up to 4.55% APY on your savings. Yonkers does tax you if you either live in or work in Yonkers. $9,021 plus 6.25% of the amount over $161,550. No additional Social Security payroll tax is owed on earned income in excess of this limit, at least not until Jan. 1 of the new year when you begin to earn annual income again. It wanted proof that I lived in Yonkers full time. Since you say you've never been there, you probably didn't earn any income from Yonkers sources, and you should just say no. She's always interested in research, charts, and people: new and interesting research, compelling charts and other visuals, and people who are willing to share the details of their impressive financial accomplishments and strategies. Take the stress out of tax season. Similar to New York State and New York City requirements, if your domicile is Yonkers you are considered a Yonkers resident. Withholding tax isn't calculated differently for overtime pay. Are Bonuses Taxed Differently Than Regular Income? Enrolled Agent since 2008, Intuit Tax Expert since 2011. Good news: You can check the status of your state tax refund online. Metropolitan commuter transportation mobility tax. It's best to have money available from multiple sources. Assistant Assigning Editor | Taxes, small business, retirement and estate planning. That's because New York State's income tax can be as high as 8.82%, and New York City levies one up to 3.876%. This means that the tables should be used from July 1, 2021, going forward.