Live in New Jersey Work in New York City
I want to know if there are specific tax advantages if one were to live full-year in New Jersey and work in Manhattan versus the case where one were to live full-year in New York city and work in Manhattan.
If I were to live full-year in New Jersey and work in Manhattan, will I have to pay New York city taxes? I went over form IT203 (Non-resident income tax return); it appears that I will have to pay New York state tax and Yonkers nonresident earnings tax, but there is no provision for New York city tax. Could this be a potential tax advantage over the case of living full-year in New York city and work in Manhattan? It is a decent saving.
Furthermore, if I were to live full-year in New Jersey and work in Manhattan, will I be withheld taxes from New Jersey state, New York state, New York city, and Yonkers?
I actually don't understand this Yonkers tax. What is it? Is it a defined boundary or region in New York city where one work? If I work in downtown Manhattan, am I part of Yonkers automatically?
Thanks