Where do I pay taxes?
If I rent in New York City and own a home in Texas and split my time between the two, do I pay income taxes in both places? I know there is no state income tax in Texas but there is a high property tax, whereas in NYC I have to pay a very very high state and city income tax. Am I responsible for BOTH?
Public Comments
- You will prorate your residency in NYC and pay NYC and NY taxes for the portion of the time spent in NY. There are worksheets that are used to do the proration. I live in NJ and have had the same split issue in the past
- You are responsible for paying property taxes wherever you own property, regardless of whether or not you live and/or work there. NY state/city income tax is a little more complicated. For the period you are a NY state/city resident, you owe income tax on all income, earned or unearned, wherever you work. For the period you are not a resident, you still owe income tax on income you earn for working in NY. If you are a "part-year resident," you have to do some complex prorations, as noted in an earlier posting. You can get a credit on your NY resident income tax return for income tax paid to another state for working in that other state -- but if, as you say, TX has no income tax, then that won't help.
