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    ConfusedNY_NJ's Avatar
    ConfusedNY_NJ Posts: 1, Reputation: 1
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    #1

    Apr 13, 2006, 06:53 AM
    Live in NJ... work in NYC
    I am married, currently own a home in New Jersey and am looking for work in NYC. I will be commuting to NYC via the train so I will maintain residency in NJ. My questions are, on my paycheck, what will be deducted? How will my year end taxes be affected if I file multistate?

    Let's say I make 80,000/annual in NJ and am offered a job in NYC for 100K. Will the tax deductions on my biweekly paycheck offset the increase in salary? Meaning would it be worth my while to accept a position offering 100K per year if my take home pay would be the same as me staying with a position which pays 80K per year?

    Any help would be greatly appreciated!

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 14, 2006, 09:45 AM
    You will pay NY state income taxes, which are higher than NJ taxes.

    NJ offers a credit for the NY taxes paid, so you will effectively pay NO NJ taxes (though you MUST file a NJ tax return to make this happen).

    I doubt the NY taxes are so much higher to offset the $20K increase in salary, but you must also consider the commuting costs and the cost of eating lunch in NYC (not cheap by any means) every day while working.

    It may be a wash now, but you probably would have better advancement opportunities in NYC vice NJ (just my opinion).
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