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    joenicosia's Avatar
    joenicosia Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 11, 2007, 04:02 PM
    Living in NY, working in NJ
    1) How are state income taxes determined when a person lives in NY, but works in NJ?. and whatever the answer, is it also explained in the two states 1040 publications that are mailed to residents every year along w/the forms?

    2) What are the exact criteria regarding "telecommuting"? For example, if a person lives in NY, and has his office in NJ,. BUT telecommures (i.e. works from his home in NY), there seems to be the potential for uncomplicating this "live in one state, work in the other" issue. But I must know the exact criteria for what constitutes telecommuting.

    Thanks
    Joe N.
    Duckling's Avatar
    Duckling Posts: 45, Reputation: 9
    Junior Member
    		  
    #2

    Nov 11, 2007, 06:58 PM
    This is what I've been learning about the income tax. Hope it helps!

    YouTube - 3.08 Federal Income Tax

    YouTube - Ron Paul on Taxes
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #3

    Nov 12, 2007, 07:13 AM
    1. Living in NY but working in NJ: you will have to fill out an NJ non-resident tax form. After you figure your NJ tax, you then fill out a NY State tax form. NY State will give you a credit for taxes paid to NJ, but because NY state rates are higher than NJ, you may well end up owing NY State some money as well. At the end of the day I suspect that the total tax you have to pay is about the same as if you worked in NY. And yes, all this is covered in the instructions for their various forms. If you're going to do your own taxes, I strongly suggest using a tax program like TurboTax, and be sure to get both the NJ and NY state modules.

    2, Telecommuting - I believe that this will only work if your home is your principal office - that is, if the company does not provide an office for you at their building in NJ. Obviously this may be attractive to you as you would avoid commuting cost and time, but as noted above this strategy most likely won't save you on taxes.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Nov 13, 2007, 09:32 AM
    Agree with Ebaines, except that Turbo Tax may not be the best option for you.

    Recommend you use a tax professional, who will probably cost about what you would pay for the Turbo Tax programs.
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