Wife works in NYC, lives in NJ
I work in NJ and live in NJ.
Just got married so next year will be the first time we file together.
Considering buying a home in PA and both would continue to work at our current jobs.

Combined income: over $200K
Generally speaking how would the move to PA affect our overall tax liability?

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Originally Posted by shakatah

Wife works in NYC, lives in NJ
I work in NJ and live in NJ.
Just got married so next year will be the first time we file together.
Considering buying a home in PA and both would continue to work at our current jobs.

Combined income: over $200K
Generally speaking how would the move to PA affect our overall tax liability?

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Would file in states where you have earned income plus PA

Quote:

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Originally Posted by delite

would file in states where you have earned income plus PA

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Thanks. Delite, I know we will have to file for each state in which income is earned, however I am more interested in how the move from NJ to PA would affect our overall income tax liability with combined income over $200K, if she continues to work in NYC and I continue to work in NJ.

Actually, just to be absolutely clear she would need to file NY and PA, I would only need to file PA due to reciprocity agreement between PA and NJ.

On the federal side of the house, you are AT LEAST in the 25% marginal tax bracket, right on the edge of the 33% bracket.

I expect you are in the higher brackets for PA as well. The NY situation should not be too bad since only HER income will be taxed, plus PA should be giving you a credit for the NY taxes paid.