Any other Jerseyans working in NY? Tax ?'s

[Fireup2020]

Are there any "secrets" and things to avoid when dealing with residence in NJ, and income earned in NYC?

Is there also city tax to be paid?

Hoping for advice from board members who have experience with this.

Is one tax software better to use in this scenario than others?

W2 income only, so not a tax nightmare.

Thank you.

 

[brewer12345]

Secrets? Lube up and bend over.

You are liable for NY state income tax but not NYC income tax. Other than that, pay up.

 

[walkinwood]

Secrets? Lube up and bend over.

You are liable for NY state income tax but not NYC income tax. Other than that, pay up.

Agreed!

IIRC, your NY state taxes are deductible from your NJ taxes. Turbotax takes care of it, but remember to do your NY state taxes before your NJ taxes.

 

[Fireup2020]

So start off with TT thinking you live in NY? Then add the NJ address/forms?

 

[walkinwood]

So start off with TT thinking you live in NY? Then add the NJ address/forms?

No - don't fudge your address.

When you fill in your state forms, TT will advise you to fill in your NY state form first, and then your NJ one. Just look for it. I missed it the first time I had to do this.

 

[Gone4Good]

What brewer said, only you can forget about getting any lube.

 

[Gumby]

Agreed!

IIRC, your NY state taxes are deductible from your NJ taxes. Turbotax takes care of it, but remember to do your NY state taxes before your NJ taxes.

Worked the same way when I worked in NYC while living in CT. Always do your Federal return first, then your NY return and do NJ last. Remember also that if you travel for business, you will allocate your tax payable to NY (it is the ratio of days actually worked in NY to days actually worked during the year). If you have an office in NY and work at home, its is the same as working in NY for purposes of the allocation. However, if you traveled to Pennsylvania for work, those days are not worked in NY. The tax software is sometimes messed up on this allocation, so you need to check the actual physical forms with an eagle eye.

P.S. -- It is even more complicated if your spouse works only in NJ. If you get stuck, try the New York State Taxation Department website for answers
http://www.tax.state.ny.us/