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    cscoamat's Avatar
    cscoamat Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 23, 2009, 07:39 AM
    Tax Advantage to Living In New Jersey & Working in Manhattan
    I was wondering what are the tax advantages to living in New Jersey and working in Manhattan. In particular:

    (1) Is it true that by living in NJ and working in Manhattan, one does not have to pay New York city tax? Nor pay Yonkers taxes? So that the only non-federal tax for such a person would effectively be New York state tax?

    (2) Is it also the case that by living in New Jersey and working in Manhattan, one is not effectively subjected to ANY New Jersey state taxes?

    Thanks.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    May 23, 2009, 11:15 PM

    If you live in NJ and work in NY, you must report the income on NY state tax return. You will not pay city tax.

    You will also report the same income on NJ tax return. On NJ tax return, you will claim credit for the taxes paid to NY.
    Read: Your U.S. Tax Return: Working or Living in Two or More states
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    May 24, 2009, 08:25 AM
    Both of your questions are true.

    On #2, you probably will NOT pay any NJ tax if all of your income is NY-sourced. However, you DO have to file a NJ tax return.
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