[reg123168]

Hi, I am living in nyc. Just got a new job in nj. Do I have to pay nj sui/sdi tax even though I live in nyc?

I have to pay federal tax, nys tax, nyc tax & nj state tax. Arghhhhh! Just curious... if I got a job with the same pay in nyc. Will it save me some tax, or I can claim back the nj state tax next year?

Many thanks!

[ebaines]

hi, i am living in nyc. just got a new job in nj. do i have to pay nj sui/sdi tax even though i live in nyc?

i have to pay federal tax, nys tax, nyc tax & nj state tax. arghhhhh! just curious... if i got a job with the same pay in nyc. will it save me some tax, or i can claim back the nj state tax next year?

many thanks!

I can't answer the question about the SUI/SDI (state unemployment and disability insurance) tax for non-resident workers in NJ, sorry. The good news is it's a relatively small amount, at least compared to all the other taxes.

As for whether from a tax perspective it would be better to have a job with the same pay in NYC - it really doesn't matter. What happens is first you pay taxes on your NJ earnings to NJ at their rates, then you figure your NY/NYC taxes as if you worked in NY, and then you get to take a credit for the amount of taxes paid to NJ. So the total of what you pay to NJ and NY is the same as if you lived and worked in NY. Since NYC has a higher tax rate than NJ, it doesn't cost you any more than if you had a job for the same pay in NYC. The opposite would not be true - due to the unequal tax rates between NJ and NYC, someone who lives in NJ and works in NYC is likely to pay more in taxes than if they lived and worked in NJ for the same pay. Of course, there may be other advantages to working in your home state, such as lower commuting costs and aggravation.

[AtlantaTaxExpert]

I agree with Ebaines.