Hello! I just recently started working in NYC, but I am a NJ resident. I would like to know if I will owe NYC taxes and/or NY state taxes if only NJ and Federal taxes are being deducted from my pay? I have heard so much from various people and since I am not familiar with filing both tax forms, I would like to be informed on the correct approach so I will not owe back-taxes.

Thank you.

Selena

Since you are NOT a NYC resident, you will NOT owe NYC taxes.

However, since you work in NY state, you WILL owe NY state income taxes. You will need to file BOTH NY and NJ state tax returns. Fortunately, NJ will give you a credit for the NY state taxes paid, so it is possible that you will owe little, if any, NJ state income taxes.

Contact your payroll department and have them withhold NY state income taxes (but NOT NYC) and have them STOP withholdig NJ taxes.