What a hose job...
I’m READY to go!
Not working in Manhattan anymore so the things that I liked I dont go to or see anymore.
50 and married so the young babes don’t matter anymore.
My idea of nightlife is watching reruns of “The Honeymooners” :)
PA here I come.
As soon as the old bat, er, my wife’s mother, drops de, er, passes on.
I actually like her so I’m torn.
The plan of the United States was to have competing ideas at the state level with freedom of movement (i.e. No papers needed) to allow for the competition of ideas.
Time for you to move to Tennessee, Florida or maybe Texas.
JoMa
I actually chose where I live based on how people here are taxed. It’s where I plan to retire. Kentucky. They have an income tax, but it doesn’t apply to Social Security. And the property taxes here are dirt cheap.
So far, anyway...
It’s very simple.
You have money...NY wants it.
One of the major casualties of the NY taxing system....are NBA players. Once you examine your salary, and the chunk that the city/state will take out...it simply doesn’t make that much sense to play there. At some point, the Knicks will eventually have to study the idea of moving the team beyond the state borders.
“...No wonder NY is losing its people. ...”
Yep. The solution is to have no NY taxable income...none.
Let em whither on the vine and twist in the wind.
It’s simple. Look at your take home pay after all taxes...Then decide weather it is worth your time. If it is , keep doing what you are doing. If it is not change jobs,move,do what you need to do. Its a free country. I agree with you that you are getting hosed. Maybe they pay better in NY than NC where I live.
That’s the way California did it to me when I moved back to Texas in 1989. I protested and they hit me with a tax lien filing that showed up on my credit. I ended up paying them and never went back.
Delaware did it to me 30 years ago ...
So get an advocacy lawyer and sue NY. Complaining when you have no voice in NY doesn’t help.
I think most states do it that way. Sorry.
The gouging by NY State is worse than you think.
This is the NY State “progressive” income tax rates:
4 % on the first $8,500
4.5 % on income between 8,501 and $11,700
5.25 % on income between $11,701 and $13,900
5.9 % on income between $13,901 and $21,400
6.33 % on income between $21,401 and $80,650
6.57 % on income between $80,651 and $215,400
6.85 % on taxable income between $215,401 and $1,077,550
8.82 % on taxable income of more than $1,077,550.
Forgetting all that for the moment; given the formula you said is used to calculate your tax as a non-resident, they figure the tax on the total income, and then use the fraction represented by the non-resident income divided by the total. Using your example of $40,000 and $8,500, that ratio would be .2125 or 21.25% of the tax due on whole $40,000.
The 2018 NY tax tables say that the tax on $40,000 is $1,917 if filling as married filing jointly, or $2,221 if filing as single.
21.25% of the $1,917 is $407.
21.25% of the $2,221 is $470.
But using the tax tables, a straight tax on the $8,500 is only $341. That means the NY tax is either $66 or $129 more than what the regular tax on the $8,500 would be, depending on which filing method is used - single or married filing jointly.
They screw you first because they do not merely apply the appropriate tax on the non-NY income alone.
They screw you also because the effective tax rate (% applied to the income) on the $40,000 is higher than what would be applied on the $8,500 alone. They wind up taxing not only on a part of the income acquired outside NY, but the method has an applied tax rate that is a higher effective tax rate (%) than would be applied to $8,500 by itself.
Unfortunately, federal suits against the states on either due process or equal protection grounds, with regard to their tax practices & tax formulas concerning income taxes as applied to non-residents, have not fared well. The federal courts have been disinclined to get involved.
I’m believe that Oregone did the same thing decades ago.
One of our younger relatives moved to Oregon about mid year.
The incredibly high Oregon tax on wages was calculated on his total earnings.
Then, when he moved back here decades later, mid year, again his Oregon gross taxes were based on his total federal taxes.
Communism sucks doesn’t it.
NY taxes everything any time they can.
I visited my daughter in Nevada. While I was there her computer died (motherboard). We went to the store and she picked out a new PC. I paid for it with my credit card. New York hit me for the sales tax , because I live in NY. The computer was not made in NY, not used in NY and would never leave Nevada.
I argued with the tax vampires, but unsuccessfully.
Illinois changed its income tax rate from 3% to 5% July of two years ago. Income starting in July was taxed at the higher rate.
However, for anyone who left the state and had no income after June, you had to pay state income tax at the rate of over 4%, because that was their “easy way” to compute taxes for you that year.
You paid 1/3 MORE state income tax than everyone else for those months!
Their ultimate goal is to take it all, and give us what they think we need. Except for them-they will have everything they want, plus cost of living adjustments.
So, after leaving the company, I totaled up all the CA withholding, and called the California Franchise Tax Board. I asked how I could get the withheld money back. They told me "no way." So I asked where I vote on Election Day.
Within two week, I got a check for every dime.
I did a sample calculation based on your numbers and don’t see the problem...
Say NY tax is 10%.
10% of $8,500 = $850.
Then, 10% of $40,000 = $4,000.
$4,000/$40,000 = 0.1 (i.e., 10%) 0.1 x $8,500 = $ 850.
Same, same. What did I miss?