New York/New Jersey State Income Tax

[PERSonalTime]

If you live in New Jersey and work in New York, which state would you file state income tax in?

 

[Alan]

You have to file in both States

https://ttlc.intuit.com/questions/1...-if-i-live-in-new-jersey-and-work-in-new-york

This is my situation in that I live in Texas but a get an unqualified pension from a company in Louisiana, reported on a W-2. State tax is with held and it is always too much so I have to file to get some back. (I have filed a State W4 to have the minimum allowable tax withheld). The State does not tax me on my other sources of income.

 

[PERSonalTime]

Alan,

Thanks for the answer. Good to know there's no double taxation involved.

 

[Alan]

Alan,

Thanks for the answer. Good to know there's no double taxation involved.

Yes indeed, that would really hurt.

 

[Gumby]

For many years, I lived in CT and worked in NYC. Alan is right, you need to file in both states, and the best way to complete your tax returns is to do your Federal return first, then NY (non resident: Form IT-203), and finally NJ. It is difficult and time consuming, but I was able to do them myself.

 

[scrabbler1]

For 8 years (2001-2008), I worked in New Jersey as I lived in New York. I had to file a NJ non-resident form along with my regular NY resident form. Because NJ's tax rates are lower than those in NY, the NJ taxes carved out a portion of NY's.

In your case, as I recall hearing from my NJ coworkers when my company was in NY prior to 2001, they filed a NY non-resident form whose taxes owed were more than what their NJ bill was. This lowered their NJ tax bill to zero but they could not claim a "refund" because they owed more to NY than what their NJ tax bill was. Those people were happy when my company moved to NJ because their total state income tax bill went down.

 

[Gumby]

For 8 years (2001-2008), I worked in New Jersey as I lived in New York. I had to file a NJ non-resident form along with my regular NY resident form. Because NJ's tax rates are lower than those in NY, the NJ taxes carved out a portion of NY's.

In your case, as I recall hearing from my NJ coworkers when my company was in NY prior to 2001, they filed a NY non-resident form whose taxes owed were more than what their NJ bill was. This lowered their NJ tax bill to zero but they could not claim a "refund" because they owed more to NY than what their NJ tax bill was. Those people were happy when my company moved to NJ because their total state income tax bill went down.

Same situation with CT rates being lower than NY. After I calculated and paid my NY taxes, the credit offset my entire CT liability. That's why you do the NY tax return first.

 

[scrabbler1]

I did the NJ return first because I needed to know how much I owed them before I could finish my NY form. Part of my NY form included a resident credit form (IT112-R, I believe) which was similar in some ways to the NJ non-resident form. I also filed the NJ return first in case I made a mistake on it and it got caught in time before I filed the NY return, preventing me from having to file an amended NY form. In short, the NY return depended on what I paid to NJ but not the other way around. I think the common thread between what we did was to file the non-resident return first, then the resident return.

 

[Gumby]

I think the common thread between what we did was to file the non-resident return first, then the resident return.

Precisely.

 

[mystang52]

I'm a New Jersey resident and worked in NY many years. Of course, you do federal first. Then NY, and finally NJ.
NJ tax form has a computation for credit for taxes paid to other jurisdiction.
By the way, I was never convinced that the credit was dollar for dollar, as it was based on a fractional formula (as opposed to just subtracting the NY taxes in dollars). In the last several years I used Turbo Tax so they did all the dirty work.

 

[PERSonalTime]

Everyone, that you for your informative responses. You've given me alot to work with!

 

[PERSonalTime]

Everyone, thank you for your informative responses. You've given me alot to work with!