When it comes to taxes, there are a lot of complicated rules and regulations to keep track of. One question that often comes up for residents of Pennsylvania and New York is whether the two states have a reciprocal agreement.
The short answer is yes, Pennsylvania and New York do have a reciprocal agreement for income taxes. This means that if you live in one state and work in the other, you only need to pay income taxes to your state of residence.
For example, if you live in Pennsylvania but work in New York, you will only need to pay Pennsylvania state income tax. Similarly, if you live in New York and work in Pennsylvania, you will only need to pay New York state income tax.
This may sound like a great deal, but there are a few things to keep in mind. First, keep in mind that this only applies to income tax. You may still need to pay other taxes, such as property tax, in both states if you own property in both locations.
Additionally, if you have income from sources other than wages, such as rental income or self-employment income, you may still need to file taxes in both states. Be sure to consult with a tax professional to ensure that you are meeting all of your tax obligations.
Overall, if you work in one state and live in the other, the reciprocal agreement between Pennsylvania and New York can make tax time much simpler. Just be sure to understand the limitations and consult with a professional to ensure that you are meeting all of your obligations.