[DhavalPatel]

Dear Friend,

I am a JerseyCity Resident.
Thorughout the year 2007, I worked in NYC for 2 different consultant.
One consultant withhold my tax based on NY State because his office is in NY.
While the other withhold my tax based on my home address means New Jersey.

I want to know:

1) I have to file tax return for NJ only or both NJ and NY
2) Should I get refund for NY City Tax and NYState Tax and I have to pay NJ Tax for the tax that I have paid at my previous employer. What Procedure/Forms I have to prepare.

Thanks. I heartily appreciate help.

Regards,
Dhaval

[AtlantaTaxExpert]

1) You need to file tax returns for BOTH NY and NJ,

2) Negative on the NY state tax. You earned the money in NY state and those earnings are subject to NY state tax. You are NOT subject to NY city taxes, however. Only NYC residents pay that tax.

When you file the NJ tax return, you should apply for the credit for the taxes paid to NY state. More than likely, that credit will completely offset your NJ tax liability.