[igomez]

I currently work in NJ, but I live in NY... Will I have to pay both state taxez and if so how much? I am married with no children and I make 27,000. I'm also having trouble filling out my W4 form (or is it W2? ). Should I choose "married, but withhold higher rate..." or should I just choose married, which one will provide me more money?

Thank You.

[AW805]

You'll have to file in both states, however, file Non Resident Income Tax form in NJ. You'll probably owe $ to NY but should get a refund from NJ.

[ebaines]

I would suggest filling out the W4 for NJ as "married," and not withhold at a higher rate. As for how much you will owe: NJ will tax you on the money you earn in NJ. If your taxable income is $27K/year from your NJ job that will be about $400/year. Then NY will tax you on your full income, but give you a credit for the amount of state tax paid to NJ. NY's tax rate is higher than NJ's, so you will probably end up owing NY some additional amount - NY's tax on $27K taxable income is about $1180; subtracting the $400 credit for taxes paid to NJ means you'll owe NY about $780. Of course your actual amount will vary, depending on things like exemptions and credits or other sources of income, but this should give you the general idea.

[AtlantaTaxExpert]

Ebaines covers it all; nothing to add.

[igomez]

I currently work in NJ, but I live in NY... Will I have to pay both state taxez and if so how much? I am married with no children and I make 27,000. I'm also having trouble filling out my W4 form (or is it W2??). Should i choose "married, but withhold higher rate..." or should i just choose married, which one will provide me more money?

Thank You.

I think it would it be better if I just moved to NJ! Thanks for the advice everyone! I'll surely take it into consideration.

[AtlantaTaxExpert]

Glad to help, but moving MAY be a bit extreme. The tax filing is not really that complex.