Good afternoon!

Here is my situation: I've lived in New Jersey for 3 years or so. I never switched my driver's license or permanent address because I commuted from my house in Pennsylvania. Now I work in Manhattan, and both my W-2s are representative of my NJ address. I'm trying to figure out which forms I need to fill out. Someone told me that I needed resident NJ and non-resident NYC, but I just wanted to make sure I'm sending in the right forms. Can you please help me out?

Thanks!

ebaines

Let me see if I have this right: for all of 2007 you lived in NJ, but changed job mid-year from a NJ job to a NYC job - right? It doesn't matter which state your drivers license was issued by - the important thing here is where do you sleep the majority of nights? If the answer to that is NJ, then that's your residence. And if NJ is still your residence then your friend is correct - you file resident NJ and non-resident NY State. Complete the NY State tax form first - form IT-203 for non-residents. They will require that you report all your income for the year (even income you earned before starting your job in NY), but at the end of the calculation you'll see that you pay taxes to NY only on your NY earned income (although at a rate that takes into account your full year's income). Then when you do the NJ-1040 form they too will ask you to report all your income and you will calculate the tax due on the full amount, but then you take a credit for taxes paid to NY, so you aren't double-taxed.