chadnynj
Mar 19, 2009, 11:15 AM
So here it goes. I worked in NJ all of 2008. My wife worked in NY all of 2008. For the first 6 months of 2008 we lived in NJ. The second 6 months and currently we live in NY. (We literally started a new lease on July 1st).
How do I file this? We both have the same residency information, so jointly is okay, right?
Right now I have it as I should file two main forms with NJ, the 1040 for the first part of the year and 1040NR for the second part. As I understand it, for the first part of the year, mine and my wife's income will be tax liable to NJ because we lived in NJ. For the second part of the year, only my income will be taxable because I'm the only one who worked in NJ. Also, should I just split my income 50/50 between these two forms?
For NY, I have it as I should file an IT-203 Nonresident and Part-Year Resident form. The New York State amount of income should equal my wife's total salary (because she worked in NY all year) and half of my salary (because I lived in NY half the year), is this correct? NY calculates my tax based on my federal income and reduces the tax by the percentage of non-NY income. This is then the tax liability for NY as I understand it.
Final question: Which way do I take the credit for taxes paid to another state? Do I take what I paid to NJ and apply it as a credit to NY? Or do I take what I paid in NY taxes as a credit towards NJ? Or to be even more confusing, do I take a credit for the taxes that were paid to NY in the first half of the year on the NJ 1040 and then take a credit on the NY IT-203 for the taxes that were paid on the NJ 1040NR for the second half of the year?
Does it even matter?
Please. Someone help. Thanks so much!
How do I file this? We both have the same residency information, so jointly is okay, right?
Right now I have it as I should file two main forms with NJ, the 1040 for the first part of the year and 1040NR for the second part. As I understand it, for the first part of the year, mine and my wife's income will be tax liable to NJ because we lived in NJ. For the second part of the year, only my income will be taxable because I'm the only one who worked in NJ. Also, should I just split my income 50/50 between these two forms?
For NY, I have it as I should file an IT-203 Nonresident and Part-Year Resident form. The New York State amount of income should equal my wife's total salary (because she worked in NY all year) and half of my salary (because I lived in NY half the year), is this correct? NY calculates my tax based on my federal income and reduces the tax by the percentage of non-NY income. This is then the tax liability for NY as I understand it.
Final question: Which way do I take the credit for taxes paid to another state? Do I take what I paid to NJ and apply it as a credit to NY? Or do I take what I paid in NY taxes as a credit towards NJ? Or to be even more confusing, do I take a credit for the taxes that were paid to NY in the first half of the year on the NJ 1040 and then take a credit on the NY IT-203 for the taxes that were paid on the NJ 1040NR for the second half of the year?
Does it even matter?
Please. Someone help. Thanks so much!