[gcuncliff]

I live in nj my job is based out of ny but I only go there once a week the rest of the week I work at home. All my taxes were withheld in ny. I probably have to file in both states and pro-rate it. What forms do I need to do this? And should I take a credit to nj or take a refund from ny and pay nj myself? And is there anything else I need to do?

[AtlantaTaxExpert]

GcunCliff:

Your situation SCREAMS for professional tax help.

Now, if you insist on trying to do it yourself, you should try using tax software (I prefer TaxAct myself), but TurboTax and TaxCut are very good products, if somewhat pricey.

I am available if you want my help. My fee would be about what you would pay for the tax software. See email address below.

[gcuncliff]

TO Atlanta Tax Expert thanks a lot but you didn't answer any of my questions all I need to know is what forms do I need to pro-rate it with

[AtlantaTaxExpert]

The non-resident NY state tax form (I cannot remember the form number) allows you to list your federal income and your NY state income on adjacent but separate coulums.

You would do the pro-rating on this form.

[gcuncliff]

To Atlanta Tax Expert thanks a lot it was very helpful I think it's the ny IT 203 form. Do you happen to know which form from nj I could pro-rate it on

[AtlantaTaxExpert]

Sinve you LIVE in NJ, you do NOT pro-rate on the NJ return.

You get to pay NJ taxes on every cent you make, regardless of WHERE you earn it.

[gcuncliff]

TO Atlanta Tax Expert. So all I have to do is take a credit on my nj return against the tax I paid to ny?

[AtlantaTaxExpert]

Yes, that is correct!

[gcuncliff]

TO Atlanta Tax Expert thanks a lot you were a big help. Just one more thing do I need proof that I worked at home in nj and will I get a penalty for not witholding in nj

[AtlantaTaxExpert]

Get a memo from your employer explaining your work situation and attach it to the tax returns.

You MAY get a penalty for not withholding NJ tax. Attach a letter explaining the situation and ask NJ to waive the penalty. All they can do is say NO!

Have your emplyer begin to withhold NJ taxes so you will not have this problem next year.

[gcuncliff]

Atlanta tax expert. I spoke to someone from the nj tax department and I was told that since I work at home on my own will it is considered as if I work in ny and I don't pro-rate my taxes and all I do is take a credit for every thing to my nj-1040.

[AtlantaTaxExpert]

If that is what they told you to do, then do it.