I just bought a condo in NJ. What do I need to do in regards to my Taxes. I have my friend that does my taxes, but he never did NJ taxes. Anything I should make sure to tell him?

If this is your FIRST home purchase AND if you are a U.S. citizen or resident alien, you qualify for the $8,000 First Time Home Buyer's Credit, which you can claim on your 2009 tax return or you can amend your 2008 return.

I recommend claiming the credit on the 2009 return, because the IRS is back-logged on 2008 amendments, so, quite frankly, you will probably get the refund faster on the 2009 return.

If your friend has never done the NJ tax return, then you should get professional help, as the NJ return is one of the more complicated state returns to prepare.

If you want MY professional help, contact me at [email protected]. You will find my fees to be very competitive, especially when compared to the local preparers in NJ and NY.

Your employer should be withholding NY State income tax from your salary. You will have to file a NY State non-resident and part-year resident income tax return (IT-203) and a NJ tax return (NJ-1040). On the NJ return you have to report all your income, and then calculate taxes on the full amount, then take a credit for taxes paid to other jurisdictions (i.e. NY) - result will be that you will owe little income tax to NJ, if any (assuming that your salary is your only income source).

EBaines:

Good catch! I failed to notice the SUBJECT line that showed the OP working in NY state.