IF I am working in NY and residing in NJ for which state my employer has to with hold the taxes.

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Originally Posted by ravindrah

IF I am working in NY and residing in NJ for which state my employer has to with hold the taxes.

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New York. You may also be able to request your employer to withhold NJ taxes as well, if you like. This could be helpful if you have other sources of income in NJ (dividends, interest, capital gains, etc.), and want to avoid having a big tax bill due at the end of the end of the year.

Thanks.Whether I need file returns for NJ also( I don't have any other source of income in NJ

Yes, you do. You'll be filing a Non-resident tax return for NY, and a resident return for NJ.

Additionally, you will want to claim the credit offered by NJ on the NY taxes paid on the NY-based income. That credit may completely offset your NJ taxes.