Hello, All! I have a silly question to ask. I live in NJ and work in NYC. Do I have to file state taxes with NJ and NY or is filing with NJ sufficient?

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Originally Posted by Jaylover24

Hello, All! I have a silly question to ask. I live in NJ and work in NYC. Do I have to file state taxes with NJ and NY or is filing with NJ sufficient?

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First complete a NY Non-resident return, then the NJ state return. NY will tax you on the money you earned working in NY (although at a tax rate that takes into account all your income). When you figure your NJ taxes you get a credit for the amount you paid to NY (line 39 of NJ-1040 - Credit for Income Taxes Pid to Other Jurisdictions."

Agreed. One added note: Since NY state tax rates are so much higher than NJ, it is likely the credit cited will COMPLETELY offset the NJ taxes owed.