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-   -   NYC/PA Resident? (https://www.askmehelpdesk.com/showthread.php?t=814356)

  • Jul 21, 2015, 01:39 PM
    rarena
    NYC/PA Resident?
    I purchased a home in lancaster county would like to become a resident of pa.
    However I am not clear of what the tax ramification and would like to take advantage
    Of the homestead tax relief. But still work in NYC and can't leave my job at this point
    In time. Is there anything I can do short of getting a job in pa and leaving NYC?
  • Jul 21, 2015, 01:44 PM
    AtlantaTaxExpert
    Once you become a Pennsylvania resident, you are liable for PA taxes on all income earned irrespective as to whether it was earned in PA or NY. That's the BAD NEWS!

    The GOOD NEWS is that PA will give you a credit for the taxes paid to NY, so you eventually tax liability to PA will be ZERO.
  • Jul 21, 2015, 01:55 PM
    ebaines
    The basic question is this: where do you live? Do you commute from PA to NYC every day? If so, then you are a PA resident and will have to file both PA and NY State tax returns, though as ATE said your tax bill will probably not go up from what it has been. In fact, as a commuter rather than NYC resident your total tax bill will probably go down as you will no longer have to pay NYC resident tax. But if you are still residing in NYC (i.e. you have an apartment in NYC and spend most of your time in NYC) then you are a NY resident and the PA home is considered to be a second home (a vacation home) - in this case you continue to pay NY State and NYC taxes as before, and don't have to file anything in PA (assuming you have no PA-source of income).
  • Jul 21, 2015, 01:58 PM
    AtlantaTaxExpert
    Ebaines raises good points I had not considered.

    The bottom line question is: WHERE do you live?
  • Jul 21, 2015, 02:01 PM
    joypulv
    How much is the homestead deduction (property taxes, OP is referring to, I believe). The amount will help determine how much you should go through to get it.

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