I see a lot of people living in NJ and working in NY but its hard to find info on working in NJ and living in NY. Do you know how taxes work when I live in NY and work in NJ? Does the federal get affected by this. I own a home in SI and my wife works in NY.

Thanks

RWatson626:

Your situation is a bit more complicated.

You have to file two state tax returns (NY and NJ) plus pay NYC income taxes (the tax calculations for NYC are embedded in the NY state tax form).

You will pay taxes to both states, but NY will give you a credit for paying the NJ taxes.

It's relatively simple for the tax professional who deal with multi-state returns on a daily basis, but it can be confusing for the layman.

Contact me at [email protected] if you have further questions.