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yankeedoodle · Apr 16, 2006, 07:08 AM

I live in NY and work as consultant in NJ. My employer (sponsorer) office is in NH.
1)Can I itemize deductions for commute expenses from my home in NY to work place (where I worked as consultant)?
2) My employer cut tax of NJ. Do I have to file NY tax return also?

-Mukul

AtlantaTaxExpert · Apr 16, 2006, 10:29 AM

Mukul:

You cannot claim commuting expenses.

You need to file a NY return (where you live) and a NJ return (where you work). NJ has first dibs on your money, and you will pay the NJ tax. You will probably pay NY tax as well, but NY gives youa credit for the NJ taxes paid.

yankeedoodle · Apr 16, 2006, 01:38 PM

Thank you very much

AtlantaTaxExpert · Apr 16, 2006, 01:43 PM

Glad to help!

ScottGem · Apr 16, 2006, 02:10 PM

Let me add one thing here (and I hope ATE will correct me if I'm wrong).

You say you were working as a consultant, yet you say your employer withheld taxes. If you were truly an independent conultant I'm not sure if taxes can be withheld. The real key is whether you received a W-2 or a 1099 for the income. If you received the 1099, then you were a consultant and your income should be reported on a Schedule C. In that case, you can deduct commuting expenses.

AtlantaTaxExpert · Apr 16, 2006, 08:49 PM

I must disagree with Scott. Commuting is defined as travel to the primary place of work. If the consultant works at the same place for a period in excess of a year, travel to that place of work is considered commuting and is not deductible.

ScottGem · Apr 17, 2006, 05:32 AM

Thanks for the clarification. I was thinking about my answer on the commute today and realized that I was assuming using a car rather then mass transit. When I fill out my schedule C it allows me to deduct mileage expenses for work related travel. That is what I was basing my answer on.

As I thought about it, I realized that even if one was an independent contractor, mass transit expenses would not be deductible.