geekyguy
Jan 26, 2009, 02:39 PM
Hello, I need help from the experts here about a important question I have with respect to filing my taxes for NY & NJ.
In the past years I suffered too less amount being deducted with my company based in Jersey and I asked them to deduct more (hoping that I'd get a nice return back as we also had a baby this year). In the meantime, I switched jobs and accepted a position in NYC and agreed to work for W2 (where I pay for my family medical insurances and no benefits unlike my previous employer with whom I was yearly salaried with benefits). I work for a day rate with no benefits and thought I could itemize my insurance payments I made since joining the new company (which comes to around 4K for 4 months I worked with this new company).
My wife too worked for most of this year till we had our baby and she was a resident in NJ and worked in NJ as well. Since I got my W2 from both my employers I wanted to try and find out how much I'd get a return. I used one of the online tax software and entered my first W2 from my previous employer and I was so glad to see that I was getting a hefty amount as return (I selected - Married filing separately with one dependent). I was also getting about 800 dollars back from NJ as well.
All changed the moment I entered my NY W2. My NY W2 did not deduct any tax for NJ, and deducted only for NY. But NJ added up both my salaries and thought I didn't pay tax for that amount. My federal return shrunk 1/3 and the NJ tax showed that I owed about about 10K (if I leave the NJ state tax withheld amount blank in that NY W2) and 8K (if I enter the same amount paid for NY state in the NJ tax withheld column).
That means I have to pay a lot more money than I anticipated of a return. I was shocked and still am and wondering whether this would ever change with the addition of my wife's W2. I had a rough year with expenses sky rocketing for me with medical, parental visits for more than 6 months and attorney fees, tickets and international mortgage payments etc.
If some one can shed some light and let me know how I should be filing this, I'd greatly appreciate that.
Thank you!
In the past years I suffered too less amount being deducted with my company based in Jersey and I asked them to deduct more (hoping that I'd get a nice return back as we also had a baby this year). In the meantime, I switched jobs and accepted a position in NYC and agreed to work for W2 (where I pay for my family medical insurances and no benefits unlike my previous employer with whom I was yearly salaried with benefits). I work for a day rate with no benefits and thought I could itemize my insurance payments I made since joining the new company (which comes to around 4K for 4 months I worked with this new company).
My wife too worked for most of this year till we had our baby and she was a resident in NJ and worked in NJ as well. Since I got my W2 from both my employers I wanted to try and find out how much I'd get a return. I used one of the online tax software and entered my first W2 from my previous employer and I was so glad to see that I was getting a hefty amount as return (I selected - Married filing separately with one dependent). I was also getting about 800 dollars back from NJ as well.
All changed the moment I entered my NY W2. My NY W2 did not deduct any tax for NJ, and deducted only for NY. But NJ added up both my salaries and thought I didn't pay tax for that amount. My federal return shrunk 1/3 and the NJ tax showed that I owed about about 10K (if I leave the NJ state tax withheld amount blank in that NY W2) and 8K (if I enter the same amount paid for NY state in the NJ tax withheld column).
That means I have to pay a lot more money than I anticipated of a return. I was shocked and still am and wondering whether this would ever change with the addition of my wife's W2. I had a rough year with expenses sky rocketing for me with medical, parental visits for more than 6 months and attorney fees, tickets and international mortgage payments etc.
If some one can shed some light and let me know how I should be filing this, I'd greatly appreciate that.
Thank you!