Some New Yorkers Will Be Hit With A Bigger Tax Bill

Some New Yorkers are going to be hit with a bigger tax bill for 2024, as they will begin to pay taxes on income they previously hadn't. It's already bad enough that New York is number three when it comes to state income tax. High taxes are no surprise to New Yorkers. The state usually lands among the top when it comes to taxes. According to Turbo Tax, New York has the third-highest income tax rate for 2023,

The states with the highest income tax for 2023 include California 13.3%, Hawaii 11%, New York 10.9%.

Photo by Towfiqu barbhuiya on Unsplash

More: New York Residents Are Eligible For More Than $2,000 In Tax Credits

This year, the IRS will enforce 1099-K reporting requirement for third-party payment apps, which are hugely popular for payment processing, according to Black Enterprise. New Yorkers using PayPal, Venmo, Cash App, or Zelle to accept payments will have to report their earnings. The new reporting rule was supposed to take place in 2022 and states that any earnings over $600 must be reported to the Internal Revenue Service. This year, any earnings over $5,000 paid via those apps will be taxed.

Top 5 Highest Paying Side Hustles In New York State

Many people in New York rely on gig work or side hustles to make ends meet. According to NY Bet, more than half of New Yorkers need the extra income provided by a side hustle or hustles) - 57% of New Yorkers rely on their side hustle to stay afloat.

And some side hustles are more lucrative than others. NY Bet conducted a study to find out which side hustles in New York pay the highest.

Photo by Samuel Rios on Unsplash

Which Side Hustles Pay The Most In New York?

According to NY Bet,

- The highest-paying side gig in NY: Freelancing on sites like Upwork and Fiverr
- Highest side-gig pay in NYC: Photography

Not every New Yorker lives in the City, so let's take a look at the top 5 paying gigs overall.

Aside from freelancing for sites like Fiverr, which pays $32 per hour on average, and photography, which pays $29 per hour, these are the top 5:

You can see which other side hustles pay pretty well in New York on NY Bet's website

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See The 10 States With The Highest Tax Burden

We can count on two things in life. Death and taxes.

In the state of New York, we can count on those taxes being high. But how high is our tax burden in the Empire State versus other states?

Wallethub recently ranked each of the 50 states based on overall tax burden which they define as "...the proportion of total personal income that residents pay toward state and local taxes." These rankings base that ax burden number on property, income, and sales taxes.

Here are the top 10 states from those rankings, And, yes, no surprise - New York made the list. But are we that bad off? See where New York ranks!

Gallery Credit: Matty Jeff

Source: Some New Yorkers Will Be Hit With A Bigger Tax Bill This Year