Hello
I have a question about paying New Jersey residency taxes

I live in New Jersey as of last year and I work in New York

I was under the impression that I was suppose to pay New Jersey residency taxes on my own
Because they were not being deducted from my pay by my job only the federal
Tax was.

After speaking with a friend of mine on the job he informed me that I was not suppose to
Pay the New Jersey state resident tax because of some agreement between ny and New Jersey and that it was some how suppose to be sent from New York state to New Jersey
State if I file ny state residency return.

Is this correct ? :confused:

I do not know about an agreement between states.

What IS the case is that NJ gives you a credit for the taxes you paid to NY. To get the credit, you DO have to file a NJ tax return.

Since NY tax rates are HIGHER than NJ, that credit completely offsets whatever you would have owed to NJ. In fact, you probably will get a $50 refund as a rebate for rent or property taxes.

Quote:

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Originally Posted by Kurt Nichols

hello
i have a question about paying new jersey residency taxes

i live in new jersey as of last year and i work in new york

i was under the impression that i was suppose to pay new jersey residency taxes on my own
because they were not being deducted from my pay by my job only the federal
tax was.

after speaking with a friend of mine on the job he informed me that I was not suppose to
pay the new jersey state resident tax because of some agreement between ny and new jersey and that it was some how suppose to be sent from new york state to new jersey
state if i file ny state residency return.

is this correct ? :confused:

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You ARE required to file a NJ resident tax return. You can offset in part (formula) for taxes paid to New York but not a dollar-for dollar credit. In additon by filing the reutrn you will probably be eligible for homestead rebate.

It has been my experience filing tax returns for NJ residents who work in NY state that the resulting credit for NY taxes paid will completely offset the NJ tax obligation.