Hello Sir,

I have been consulting for the past 3 years and have worked in Michigan, NJ and NY. My company who sponsors my H-1 B visa is based in NJ and have been deducting NJ taxes from my paychecks. For the past 2 years (April 2005-Present),I have been living in NY state and have been working on multiple projects for a firm based in NY (not NYC).

I have not filed the NY resident taxes for the year 2005, thinking to myself that since I am a consultant I have always kept moving around. Please advice me on this issue.

Would I be liable to pay for the past accrued NY state taxes plus the fine, if I file NY state taxes for the yr 2006?

What would you advice me to follow in future... instruct my company to deduct NJ and NY taxes as well?

Thanks,
VCS.

VCS:

Where is your home of record? If you do not declare one, then NJ is the home of record by default, and you need to pay NJ taxes.

Given the amount of work you have done in NY, NY state tax official probably would consider your NY-based income taxable, however. Better hope they do not find out, because NY tax officials are very good at getting their "pound of flesh" when they do find out.

Atlanta Tax Expert,

I don't own a house, I currently rent one (no lease). My vehicle is registered in NY (The only proof that I belong to NY).

Does this mean I have to pay NY taxes or just filing NJ taxes will do?

Thanks,
VCS

VCS:

If your vehicle is registered in NY, then, by default, you are a NY state resident.

File a NY state tax return and pay up. You should be able to get most, if not all, of the withheld NJ taxes back.

If you need my professional tax help, contact me at [email protected].