I live in New York but work in Vermont. How do estimate withholdings?

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biffhenderson
biffhenderson Member Posts: 1 Newcomer
in State Filing

I live in NY but work in-person in VT. Do I need to file two states and how do I estimate withholdings with my VT employer?

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  • Taxlady06
    Taxlady06 FreeTaxUSA Agent Posts: 59
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    When you live in one state and work in another, estimating state income taxes can be tricky! As a resident of New York all of your income is taxable in NY. Additionally, any income from Vermont sources is also taxable in VT. In the coming year, you will need to file a NY resident return AND a VT non-resident return. To help reduce the double taxation, you can claim a credit on your NY return for taxes paid to VT.

    To help estimate your state withholdings, I would suggest filing out a Vermont Form W-4VT and a New York State Withholding Certificate (IT-2104). These forms are similar to the federal W-4 and will help you calculate your VT and NY withholdings based on your personal situation. Your HR department should be able to assist you with this process.

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