Outrageous State Taxes? - Please Help!
Hi,
I am single and work in NJ, but I moved my residence from NJ to NYC in May 04. I have experienced an amazing increase of state taxes since then:
For 2003: on $64k income, I paid ~$2k tax to NJ state
For 2004: on $73k income, I paid ~$300 tax to NJ state, $2.3k tax to NY state (NYC included)
For 2005: on $81k income, I am calculating that I have to pay $3k to NJ state & $4.3k to NY state (NYC included)!
Have I done anything wrong to see more than doubling of my total state/local taxes from 2004 to 2005? Since I moved to NYC, my paychecks have been withheld of NJS, NYS, and NYC taxes; and I have been claiming credit from NY on the taxes I paid NJ.
I really appreciate your expert advices especially during this crazy time.