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April 1, 2025
Question

Why is my NY tax so high when I worked in PA and paid tax in PA but lived in NY and earned income in NY? It is counting the PA income in both states?

  • April 1, 2025
  • 1 reply
  • 0 views
I made 49600 in PA and 10252. in NY were I live. I did the Non resident return first which I owed ) but paid 1532. in taxes. But NY is taxing me on the 49600 + 10252. which isn't right?

1 reply

AmyC
Employee
April 1, 2025

Yes, NY is your resident state so it taxes all income and gives a credit for the double taxed income.

NY calculates the tax on the total income and then calculates the tax credit for tax paid to PA.

You get credit for the lower state tax on the lowest taxable amount.

  • Each state calculates taxable income differently. 
  • Each state has its own tax rate/ system.
  • You get the lowest of both categories as a tax credit.
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