I live in Chicago, which does not have city income tax. My company is a LLC incorporated in NYC, which has city income tax. So my understanding is that my company needs to pay "city income tax" over its revenue because it is in NYC.

It is also my understanding that the net profits of my company (revenue - expenses - city taxes, etc.) will go to me and then I'll have to pay personal income taxes (federal and state) over that received income.

My question is: Am I entitled to any credit / deduction / anything on my personal income taxes (federal and/or state) because of the fact that I live in Chicago (no city taxes here) and my company is in NYC paying city taxes? Am I doing something wrong, something less optimal for tax purposes, assuming I'm not able to move my company to Chicago in the short run?

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.