Invalid topic.
| Posted By |
Message |
| Pages: [1] 2 |
DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
|
Income tax and living on LI
If you live and work in NYC you pay income taxes.
My question is, while I know the real estate taxes are much higher in most parts of LI, are you paying income taxes if you live in LI but work in NYC?
TIA 
|
Posted 10/26/09 7:21 AM  |
| |
|
Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
|
Re: Income tax and living on LI
Are you talking about the NYC income tax? If you move to Long Island you will only pay state and federal income taxes. There is no city income tax for money that you make while working in NYC unless you live in NYC. It used to be called Commuter Tax but they got rid of it about 10+ years ago.
|
| Posted 10/26/09 7:56 AM |
| |
|
MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
|
Re: Income tax and living on LI
i work in NYC and live in long island...I do not pay taxes for NYC
|
| Posted 10/26/09 9:18 AM |
| |
|
DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
|
Re: Income tax and living on LI
Posted by MrsFlatbread
i work in NYC and live in long island...I do not pay taxes for NYC
I am curious as to how much you save on income tax.
Would you mind giving me a percentage...like after state and federal do you pay 20% less income tax bc you dont live in the city?
Thanks so much for your help
|
| Posted 10/26/09 9:24 AM |
| |
|
KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
|
Re: Income tax and living on LI
My check is 5% more every two weeks.
|
| Posted 10/26/09 9:54 AM |
| |
|
DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
|
Re: Income tax and living on LI
Posted by KittyGags
My check is 5% more every two weeks.
So over the course of a year you are saving quite a bit of $$...
I am trying to figure out if the money saved in income tax covers (or comes close) to matching the extra real estate taxes we would pay if we moved to LI
|
| Posted 10/26/09 9:58 AM |
| |
|
ko123
My loves!
Member since 10/07 3002 total posts
Name:
Kristin
|
Re: Income tax and living on LI
Posted by DiamondGirl
Posted by KittyGags
My check is 5% more every two weeks.
So over the course of a year you are saving quite a bit of $$...
I am trying to figure out if the money saved in income tax covers (or comes close) to matching the extra real estate taxes we would pay if we moved to LI
We are trying to figure out the same exact thig right now. Many houses on LI we're looking at have over $10k taxes...would we really be saving that much in NYC income tax by moving there? I don't know where to get exact figures from.
|
| Posted 10/26/09 10:19 AM |
| |
|
Salason
♥
Member since 6/05 9878 total posts
Name:
|
Re: Income tax and living on LI
FWIW, when I compared what I save in NYC taxes to what I now pay in LI real estate taxes, it was about equal (but it really depends on your income and the house you pick).
|
| Posted 10/26/09 10:21 AM |
| |
|
DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
|
Re: Income tax and living on LI
Posted by Salason
FWIW, when I compared what I save in NYC taxes to what I now pay in LI real estate taxes, it was about equal (but it really depends on your income and the house you pick).
DH and I pay A LOT right now. A signifigant amount more than the taxes would be in most areas we are looking into. Plus we would get all the benefits..more property, great schools etc.
Now I have to figure out how much of that is city how much is state and federal.
I am starting to think LI is the better move after all.
Houses are more reasonable and WE ARE PAYING in income tax what we could pay in real estate tax!
eta: many of the people who stay in my area of the city (which is quite expensive. Are in cash businesses (now that I think of it) so for them, they aren't paying as much (or any) income tax..the move to LI WOULD effect them.
Those of us that pay income tax..the real estate tax pretty much evens it out...?!?!?
Message edited 10/26/2009 10:31:48 AM.
|
| Posted 10/26/09 10:25 AM |
| |
|
Sherwood
LIF Adult
Member since 8/08 1643 total posts
Name:
s
|
Re: Income tax and living on LI
I lived in NYC for many years. When I moved out to LI, the $$ I saved by no longer paying NYC taxes was nowhere near what I pay in property taxes now. But I guess everyone is different...
|
| Posted 10/26/09 10:58 AM |
| |
|
OStewarts
LIF Adult
Member since 11/07 1096 total posts
Name:
|
Re: Income tax and living on LI
Posted by Salason
FWIW, when I compared what I save in NYC taxes to what I now pay in LI real estate taxes, it was about equal (but it really depends on your income and the house you pick).
It was a lot for us as well. To be honest, the amount we paid in NYC income tax covers about 3/4 of our Nassau County property tax. It would have been a complete wash if we did not choose to live in a village that has an additional tax. So, we just ended up having to come up with that difference.
Totally worth it when you think about what you can get in exchange - we went from a one BR apt in Brooklyn to a 4bedroom house in Nassau, with great schools!
|
| Posted 10/26/09 11:02 AM |
| |
|
Salason
♥
Member since 6/05 9878 total posts
Name:
|
Re: Income tax and living on LI
Do you have your W2 from last year? It breaks it down on there. Or look at your current pay stubs to see YTD paid and extrapolate that out for the remainder of 2009.
Not sure what your situation is but the other thing I considered is that we were renting in Manhattan and buying on LI gave us the mortgage interest tax deduction so in our case not only were the NYC income tax/LI real estate taxes almost a wash but the interest tax deduction made it more favorable for us to make the move.
|
| Posted 10/26/09 11:28 AM |
| |
|
KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
|
Re: Income tax and living on LI
The only place paying the property tax on LI vs the income tax in NYC will really help you is if you have kids in school. If you live in NYC, odds are you send your children to private school which costs more than the property tax on LI...
My DH grew up in Queens and went to Catholic HS...his friends all talk about the taxes on LI "i don't know how you can afford the taxes there, yada yada" but meanwhile they don't realize their parents were signing similar checks every year for their education.
Basically my 5% goes straight back to the cost of commuting--LIRR is expensive!
Oh and ETA, you get a HUGE deduction with the mortgage, as the poster above me mentioned!
Message edited 10/26/2009 11:35:00 AM.
|
| Posted 10/26/09 11:34 AM |
| |
|
DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
|
Re: Income tax and living on LI
Posted by KittyGags
The only place paying the property tax on LI vs the income tax in NYC will really help you is if you have kids in school. If you live in NYC, odds are you send your children to private school which costs more than the property tax on LI...
My DH grew up in Queens and went to Catholic HS...his friends all talk about the taxes on LI "i don't know how you can afford the taxes there, yada yada" but meanwhile they don't realize their parents were signing similar checks every year for their education.
Basically my 5% goes straight back to the cost of commuting--LIRR is expensive!
Oh and ETA, you get a HUGE deduction with the mortgage, as the poster above me mentioned!
Well we own in Queens so we are paying real estate taxes and income (granted to real estate taxes are lower)
I did look at our W-2 and for what we pay in income taxes we could be paying taxes in Manhasset ( I have to check but I think very little of itwas state and federal..) 
I was shocked to realize this...
I know the LIRR is $$ but my DH takes the express bus now which is $11 a day..s owe are already paying a lot
Message edited 10/26/2009 11:50:28 AM.
|
| Posted 10/26/09 11:45 AM |
| |
|
HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
|
Re: Income tax and living on LI
don't forget to take into consideration, your commute into the city
whether its miles and gas + parking driving in or the LIRR both are not cheap
|
| Posted 10/26/09 11:50 AM |
| |
|
DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
|
Re: Income tax and living on LI
Posted by HeatherRose
don't forget to take into consideration, your commute into the city
whether its miles and gas + parking driving in or the LIRR both are not cheap
Oh no I know that.
I just said in the above post that I know the LIRR will be $$, DH currently pays $11 a day for the express bus, plus his path ticket to Jersey City..
I drive
|
| Posted 10/26/09 12:03 PM |
| |
|
dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
|
Re: Income tax and living on LI
We were renting in Queens when we were looking at houses. We both worked on LI, but were paying NYC income tax. For our income level and the tax bracket we were in, our NYC income tax was about equal to the additional amount we would have had to pay for property tax in Nassau.
In our set of circumstances, the services, schools and property sizes were better in Nassau for about the same overall cost of living, so that was where we bought.
|
| Posted 10/26/09 12:10 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: Income tax and living on LI
Figure in the real estate tax deduction and you would be way ahead living in LI.
Commuting does cost a lot my I pay about $3600 a year to commute and it's far less than the deduction I get tax time.
|
| Posted 10/26/09 12:12 PM |
| |
|
dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
|
Re: Income tax and living on LI
Posted by Blu-ize
Figure in the real estate tax deduction and you would be way ahead living in LI.
I didn't account for this - this is definitely true for us.
|
| Posted 10/26/09 12:13 PM |
| |
|
DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
|
Re: Income tax and living on LI
You guys have helped shed so much light on this.
Thank you so muchfor your insight
|
| Posted 10/26/09 1:13 PM |
| |
|
babymakes3
Almost there!
Member since 7/06 7376 total posts
Name:
|
Re: Income tax and living on LI
No, you only pay the NYC tax if you live in the city.
|
| Posted 10/26/09 2:21 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Income tax and living on LI
Posted by dpli
Posted by Blu-ize
Figure in the real estate tax deduction and you would be way ahead living in LI.
I didn't account for this - this is definitely true for us.
The real estate deduction shouldn't be part of the formula used on deciding because you pay both your Long Island Property Taxes, and your NYC Income Taxes with gross salary. There is no additional "deduction" because both are paid with gross income.
So if you have to pay say 11k in Long Island property taxes, your AGI (adjusted gross income) would need to be about 165k to break even because to be on the hook for 11k in NYC income taxes, you have to be making about 165k (after 401k deductions).
Things like commuting (LIRR, subway) can be factorted in after the fact since those are variables.
|
| Posted 10/26/09 2:48 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Income tax and living on LI
I was going to say before I computed the numbers in my prior post that if you make big monies (like close to 200k), you are better off living in Long Island since you will be paying quite a bit of NYC taxes.
But if you are making say under 120k or are on one income, you would do better in the 5 boros because your LI Property taxes would probably be higher than anything you would have to pay the city on one salary.
Like I said, I think the break-even point is somewhere around 165k of ADJUSTED gross income.
|
| Posted 10/26/09 2:51 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: Income tax and living on LI
Posted by ave1024
Posted by dpli
Posted by Blu-ize
Figure in the real estate tax deduction and you would be way ahead living in LI.
I didn't account for this - this is definitely true for us.
The real estate deduction shouldn't be part of the formula used on deciding because you pay both your Long Island Property Taxes, and your NYC Income Taxes with gross salary. There is no additional "deduction" because both are paid with gross income.
So if you have to pay say 11k in Long Island property taxes, your AGI (adjusted gross income) would need to be about 165k to break even because to be on the hook for 11k in NYC income taxes, you have to be making about 165k (after 401k deductions).
Things like commuting (LIRR, subway) can be factorted in after the fact since those are variables.
How do you figure? If you don't own in NYC and own in LI you can count that.
Now if they own in both places then it's moot.
|
| Posted 10/26/09 3:52 PM |
| |
|
DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
|
Re: Income tax and living on LI
Posted by ave1024
I was going to say before I computed the numbers in my prior post that if you make big monies (like close to 200k), you are better off living in Long Island since you will be paying quite a bit of NYC taxes.
But if you are making say under 120k or are on one income, you would do better in the 5 boros because your LI Property taxes would probably be higher than anything you would have to pay the city on one salary.
Like I said, I think the break-even point is somewhere around 165k of ADJUSTED gross income.
Ave thank you!!!!!!!!
You really broke it down for me...I need to talk to DH lol 
|
| Posted 10/26/09 3:55 PM |
| |
|
| Pages: [1] 2 |
