I have seen this topic on the board, but I just need further clarification:

I lived in NJ but worked in NYC in 2005. ON my W-2 in box 15 I have both NJ and NY then in box 16 I have 2 different state wages. In box 17- I only have state income tax for NY and not for NJ.

My question is- when I am filing my taxes (I am using an online tax prep program), how would I go about this? Should my employer have taken out taxes for NY- or should taxes have been taken out for NJ as well? As of now- I owe the state of NJ and I just want to be sure that I am filling out the form correctly.

Thanks for your help!

MSADJ:

If you worked the entire time in NYC and lived the entire time in NJ, then the state wages for both NY and NJ should be the same.

You will pay the taxes to NY state.

Since you do not live in NYC, you are exempt from NYC income taxes.

You need to file with NJ. However, since NY state tax rates are higher than NJ and NJ gives you a credit for taxes paid to NY, you should owe nothing to NJ and in fact should get a small rebate due to either the rneter's credit or the property tax credit.

Suggest you determine why the state wages are different.