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vinodchandra78
Jun 5, 2006, 07:22 PM
Hello,
I guess I have a similar question posed by one of the member, but in a reversed order.

I live in NY, but my company is based in NJ. I work for a consulting firm and currently my project is based in NY state.
My company has been deducting NJ taxes for past 1 yr.

1) I am confused right now.. should I be paying both NJ and NY(resident tax for NY) taxes?

2) Can I just ask my employer to change my address on the pay stubs to a New jersey address

3) I am a consultant and I keep moving all the time, isn't there any provision for people like me who stay for few months in 1 state and then move to another?

Please Advise

Thank you.

AtlantaTaxExpert
Jun 9, 2006, 10:25 PM
If you both work and live in NY, you should pay ONLY NY state taxes (NYC taxes as well if you live there). You will get ALL of the withheld NJ taxes back when you file your tax return for NJ.

However, if you move from assignment to assignment as a consultant on a temporary (less than one year) basis, then the location of your home office (in this case, NJ) dictates where you are considered to to work. Hence, you would have to pay NJ taxes. However, NY will give you a credit for those taxes against your NY state tax liability.