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

    Jan 24, 2008, 01:14 PM
    New Jersey v New York deduction
    Hello

    I live in New Jersey but work in New York deductions for New York are being done, do I have to continue to do this or can I have New Jersey make my deductions then once I file my taxes pay up New York?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jan 24, 2008, 01:25 PM
    Since you work in NY you should have NY taxes withheld from your paycheck, even though you live in NJ. You must pay non-resident NY state income tax, and that's what these deductions from your paycheck are for. When you file your taxes you will have to submit an income tax form to NY as a non-resident. You will then also have to do a NJ state tax form as a resident, and in the calculations for NJ you get a credit for the taxes you already paid you NY. The result is that you end up paying a big tax bill to NY and a small (or maybe even 0) tax bill to NJ.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #3

    Jan 24, 2008, 03:07 PM
    Agreed. If your ONLY source of income is the NY-based job, you will owe ZERO NJ taxes, I guarantee it.

    Email me at [email protected] if you need professional help. I have several clients in the NY/NJ area and am thoroughly familiar with filing NJ and NY state tax returns.

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