Nearby Resident: So I actually live in Wynnewood which is a stone's throw away from Ardmore. You can live in a brand-new two-bedroom condominium a block from City Hall for $450,000. We didn’t forget about the party animals though! 1 decade ago. Don’t forget you pay an extra 1 percent for the pleasure of buying something in the city of Philadelphia. According to Philadelphia’s Revenue Department website, if you’re a city resident who works in say, Wilmington, Delaware, and you’ve paid that city’s local tax, you can ask for that money back as a credit against your Philadelphia wage tax. If you live in a Main Line suburb, South Jersey or Bucks County and your employer is in Philadelphia, you will owe Philadelphia $3,465. And because we always give 110% to our work, we created our own SnackAbility index and ran all 92 Philadelphia suburbs through our formula for things like education levels, amenities, commute times, and diversity. Over $6 billion worth of bets were placed last year in New Jersey, which won a Supreme Court case in 2018 that cleared the way for the expansion of legalized sports betting. “There is a disconnect between the world of capital … and Black-owned companies,” said Social Venture Circle Philadelphia Network Manager John Moore. We're still working on this page's design and content. Germantown, Temple area, and Manayunk are all really close. A number of non-residents aren’t commuting into Philadelphia to work. Sam, who lives in Conshohocken, is exempt from the Wage Tax for the month spent working in Delaware. When you pay employment income such as salaries, wages, or commissions, you have to determine your employee’s province or territory of employment so you can withhold the proper deductions. This includes all residents, whether they work in or outside Philadelphia. Current Resident: Convenient to University of Pennsylvania, HUP, Graduate Hospital, Children's Hospital of Pennsylvania, Pennsylvania Hospital, Drexel, and … You don’t live or work in Philadelphia – If you live and work outside the city, you are not responsible for filing a city tax return. Today, more and more employees perform their work outside traditional office settings. If you work in NY and live in NJ, taxes usually require filing paperwork with both states. If you absolutely have to live near Philadelphia, then Bellmawr might be a place for you to consider as it's only the 9th worst Philadelphia suburb. ‘Level up’: Equity investors boost Pa.’s entrepreneurs of color during pandemic. It’s an ideal area for people aged from their mid twenties to late thirties. According to Philadelphia’s Revenue Department website, ou can thank a 2015 U.S. Supreme Court ruling, the Philadelphia Revenue Department’s website, WHYY thanks our sponsors — become a WHYY sponsor. Now, consider you live in the suburbs but also work in a Philadelphia suburb. Smoking and drinking are bad for you. You will have to file a DE non-resident return and report 100% of your Federal Income and adjustments in Col. 1 Page 2 and your income from DE sources in Col. 2 Page 2. If you work in Pennsylvania but live outside of the state, your Employer is required to withhold at the non-resident rate for the municipality where the Employer is located. Other tax jurisdictions rely on what they call the “necessity” standard. WHYY is you. Thank you! It also includes employees of Philadelphia-based businesses and organizations, even when they live outside the city (non-residents). Cigarette and alcohol taxes. In this case, an employee working outside the state is exempt if the service performed couldn’t be fulfilled the same way within the state. Is there anything I should be doing different to my W4 to make sure I do not pay this, or am I required to pay it? But our report does take note of the findings of the annual study done by the chief financial officer of Washington, D.C., which has consistently put Philadelphia near the top of the tax burden rankings. If you live in Philadelphia and work outside Pennsylvania, you might be eligible for a break on your wage tax bill. Since 1939, the City has imposed an income tax on “salaries, wages, commissions, and other forms of compensation” earned by employees. If the answer isn’t obvious, ask your employee directly where they perform work for your business. You don’t live or work in Philadelphia – If you live and work outside the city, you are not responsible for filing a city tax return. CNBC Make It analyzed data from the Bureau of Labor Statistics to identify 15 high-paying occupations that offer workers the ability to work outside while uncovering the planet's mysteries. That would give Philadelphians who work in New York, for example, a pretty significant refund since that state has among the highest income taxes in the country. Personally I wouldn't want to live in conshy, Its a town pretty much only consisting of 9-5ers and doesn't have a lot going on rather than a good bar scene. How does Act 32 affect me? Want a digest of WHYY’s programs, events & stories? Can I use the telework agreement to verify the telework days when I submit the application (Form 2106) to receive the tax … Wanted to ask a question concerning refund for local pay, I work in Philadelphia but live outside the city Am I able - Answered by a verified Tax Professional We use cookies to give you the best possible experience on our website. Do they work from home, or do they travel to work someplace else? If you let's say work in NJ but live in NYC, you owe money to NY for state and local and NJ will give back the withheld taxes. Would I then go back and resubmit to New Jersey, or does it come out a wash? Yeah, we thought you’d like that. Make sure that you are not charged for New York City income tax and that you get a refund when you file New York taxes if you do end up paying such a tax erroneously. Show Less. I live in Delaware County, Pennsylvania, and work in Philadelphia. You are a resident of Philadelphia or a non-resident who works in Philadelphia, and Your employer is not required to withhold the Wage Tax. A thought provoking, engaging and timely show that tackles wide ranging issues of concern to listeners in the Delaware Valley, the nation and beyond. If you're dreaming of living close to work, cool bars, trendy restaurants, and the city's hottest nightlife, these are the five best places to live in Philly! Thank you). You can get a townhouse for $325,000. New York, New Jersey and Pennsylvania are among the US states that apply this standard. This standard only considers the exact location where a job is performed. Ranking of cost of living by suburb based on the consumer price index and access to affordable housing (housing-to-income rates) using data from the U.S. Census and BLS. Submitted: 2 years ago. State and city governments that impose local income taxes have faced similar questions. Now that you know the basics, ask yourself these two questions: Where does your employee work? Expenses for a single person run around $1,000 a month (excluding housing). You occasionally do your work outside the city limits. Can I get reimbursed for the Philadelphia tax for those days on a past tax return? But our report does take note of the findings of the annual study done by the chief financial officer of Washington, D.C., Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago. United States - 2 Answers Random Answers, Critics, Comments, Opinions : 1 : Yes. Dunn said in 2016, of the 20 people who sought wage tax refunds, nine applications were approved for a total of $93,560. Do I have to file a local or PA state tax return? In our research, we did not compare Philadelphia to other major cities. Answer: Nonresident employees of Philadelphia … Yes. Generally, you would file non-resident tax returns in Nebraska, since you earned the income there. However, with all the (exciting) advances in technology, more and more individuals are trading in their commutes to the office to instead work remotely from home. According to Numbeo, it costs a four-person family around $3,600 a month to live in Philadelphia (excluding housing). The community is safe and I feel comfortable. Commuters rejoice! The Philadelphia Parking Authority monitors thousands of metered street parking spaces in the city, as well as neighborhood parking spaces. According to Lynch-Kraley, Fishtown is also one of the best places to live in Philly if you work north of the city, are looking for a quick commute to Center City, or want easier access to New Jersey. Their answers are usually guided by two, very different standards: Some taxing jurisdictions enforce a “physical presence” standard. Remember, we looked at 92 cities for this study. Take a look at South Philly’s massive new casino, opening in the middle of the pandemic. I work from home and live outside of the city. If you live in Philadelphia, but work outside the city, do you still have to pay the city tax? How does Act 32 affect me? Perhaps those living and working outside of Philadelphia would consider moving to the City of Brotherly Love if it came with a smaller tax price tag. I love love love living in this area. 10. Biden picks Pa.’s Dr. Levine to be assistant health secretary, How to pull conspiracy theorists and extremists back from the brink, ‘It changed me’: A year of protest and loss renews meaning of MLK Day. Falls Taproom, 3749 Midvale Ave, Philadelphia, PA 19129 Manayunk We’ve focused on areas that offer art, history, culture and the great outdoors. Example 1: Sam works as a cybersecurity analyst for a Philadelphia firm. The City of Philadelphia uses a standard that falls somewhere in between. Now, I need to file NJ tax and Philadelphia tax. families’ decisions about where to live. It appears the city agrees, but only when it comes to other city or county taxes. As the economy evolves, workplaces change. Similarly, if you live in one of these nine states but work in a state that imposes state income tax, you would only pay nonresident taxes for the state where you work. 5. I work at home two days a week. 1787). The ruling also would not apply to the six states, including New Jersey, where Pennsylvania has reciprocity agreements that require commuters to pay state income taxes only in their home state. When entering my time record with my employer, I did not use the telework code for the Mondays I worked from home. A non-resident is exempt from the Wage Tax when the employer requires him or her to perform a job outside of Philadelphia. If you’re interested in moving to one of these places, be sure to give us a shout. WHYY connects you to the Greater Philly community by providing trustworthy, fact-based, local news and information and world-class entertainment. I have a telework agreement with my employer to work from home Mondays. I want to know if I need to pay the Philly Wage Tax. The city keeps all 3.5 percent of the city wage tax paid by non-residents. If you have non-employment income coming in from your work state, you will also have to file a nonresident tax return, despite the fact that there is a reciprocal agreement in place. If you live in Cheltenham but work across Montgomery County in Lansdale, like a good neighbor Lansdale sends your earned income tax back to Cheltenham. For information on filling out a refund petition, visit the Philadelphia Revenue Department’s website. If you let's say work in NJ but live in NYC, you owe money to NY for state and local and NJ will give back the withheld taxes. Tom Wolf, you do not have to keep paying the city wage tax. To date in 2017, 12 applications have been submitted; so far, six have been granted for a combined $31,479. You will have to file a DE non-resident return and report 100% of your Federal Income and adjustments in Col. 1 Page 2 and your income from DE sources in Col. 2 Page 2. Ranking of best Philadelphia Area neighborhoods to live in based on local amenities, crime, public schools, real estate, and cost of living. Answer Save. If you live in Philadelphia, but work outside the city, do you still have to pay the city tax? You don’t have to be West Philadelphia born and raised to see that West Philly is the best neighborhood to have fun. I live in Delaware County, Pennsylvania, and work in Philadelphia. (Nathaniel Hamilton for NewsWorks, file). If you had no income in PA then you will still have to file a PA resident return and you will get 100% credit for taxes paid to DE. Answer Save 2 Answers Relevance Richard M Lv 7 1 decade ago Favorite Answer Yes. If you have questions about a specific case, please email the Department of Revenue: revenuetaxadvisors@phila.gov. If you don’t, take a good look at your next paycheck. If you live in Philadelphia and work outside Pennsylvania, you might be eligible for a break on your wage tax bill. Your Employer is not responsible for obtaining a credit or refund on your behalf. If you live or work in Philadelphia, you probably know about the Wage Tax. 2 Answers. I live in New Jersey and work in Philadelphia. The Philadelphia City Wage Tax applies to all taxable compensation to residents of Philadelphia, even if earned. Together we can reach 100% of WHYY’s fiscal year goal. (The rule is you can't be taxed twice and you … I live in Pennsylvania but work outside the state. (The rule is you can't be taxed twice and you must pay taxes to your home state (including local taxes if applicable.) Example 2: Sam’s firm asks her to spend a month reviewing a client’s server system, at the client’s site in Delaware, instead of the firm’s Philadelphia office. Telecommuting, working on the road or from home, is nothing new. Say you live outside the city and work in the city for an employer based in the city. EMPLOYEES WHO LIVE IN PHILADELPHIA, BUT WORK IN PA OUTSIDE OF PHILADELPHIA Act 32 does not apply. I have a telework agreement with my employer to work from home Mondays. Want a digest of WHYY’s programs, events & stories? I work at home two days a week. Since 1939, the City has imposed an income tax on “salaries, wages, commissions, and Philadelphia's City Wage Tax, which impacts anyone who works or lives in the city, will be reduced slightly beginning July 1 – part of a long-term effort to reduce its rate. If you live in Camden, most likely you struggle to make ends meet every month. Montgomery County-based tax attorney Stewart Weintraub said the refund would apply to more people if Philadelphia’s interpretation of the Supreme Court ruling went one step further and allowed a similar credit for the taxes paid to local government, as well as the state where the resident employee is working. So there you have it: the 10 best places to live when you love Philadelphia… but you just don’t want to be there all the time. Here’s how to find the spot you want near your destination without leaving with a pesky parking ticket. You can get a townhouse for $325,000. On the other hand, if a Philadelphia employer requires a non-resident to perform duties outside the city, he or she is exempt from the Wage Tax for the days spent fulfilling that work. It applies to all non-residents whose base of operation is the employer’s location within Philadelphia. You work from home…but where do you pay taxes? And if you’re one of that small subset, you can thank a 2015 U.S. Supreme Court ruling on a similar tax scheme in Maryland. I live in NJ and worked in Philadelphia of PA. Due to reciprocity, I do not need to file tax for PA (I came to know that from TurboTax. Answered in 1 minute by: 12/12/2017 . 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