Bright Future in Sales....will lead to dim future in taxes :(

So, I am one of those stubborn people who refuses to pay to have my taxes done (yet). I also happen to have a complicated situation where I was a New York City who worked part of the year in New York State, most of the year in New Jersey, and about 3 weeks in Ohio (for which I paid $39 in Ohio State taxes). Therefore, I spent 4 hours Monday night and 7 hours yesterday working on my taxes. I have learned much, been required to pay a little, and become what I like to call a "taxes ninja" (this term is borrowed from my good friend Jon's description of his wife's prowess with coupons, making her a "coupon ninja").

I have learned through this process that taxes went up a lot this year, and that New York is the devil. So, when I started working for Goldman out of New Jersey, all kinds of people told me that it might save me a little $$ in taxes. Fat chance. Here's how it works. New York requires me to pay taxes on ALL money I made in a given year if I was a resident for the whole year (and for simplicity sake, I'm saying I was even though I moved to Ohio on December 9). However, I also have to pay taxes to the other states in which I worked for the amount of money I learned in those states. So, the Empire State (fully living up to it's name here) graciously gives me a "credit" for the amount paid to those states. Based on a complicated formula it ends up being either the exact amount of the taxes I was charged in those states or a percentage of my New York State tax amount proportionate to the percent of my total income that came from the other state, whichever is less (fittingly).

I know that's confusing but basically what it means is that New York requires me to pay them the difference between the lower tax rate of another state and the tax rate that they charge, therefore removing any benefit of receiving income in another state.

Nice.

But I'm an innocent taxpayer who lost her job, had her roommate go awol sticking her with the rent and (not that this affects my income) whose fiance is overseas. I should get some sort of breaks or something right? WRONG. Now, I am glad to say I don't have to pay $1,700 like I did last year, but still I am not getting a dime back overall! The Feds have elected to bestow upon me $200 and New Jersey is kind enough to return some overpayment. But don't worry, New York State has snatched that up in a jiffy plus another $100. All because New York City likes to charge it's residents ridiculous rates for rent, food, drink, utilities and THEN add on $1,600 in "New York City" tax just for good measure. Ugh. Living in Jersey is looking better and better... (I can't believe I'm saying that).

Well, there you have it, the saga of my taxes this year. Mayne next year I'll fork over the $40 per state for Turbo Tax to do it. Then again, maybe not.