Ask Experts Questions for FREE Help !
    lht3142's Avatar
    lht3142 Posts: 3, Reputation: 1
    New Member

    Nov 1, 2007, 11:38 PM
    Live in New Jersey Work in New York City
    I want to know if there are specific tax advantages if one were to live full-year in New Jersey and work in Manhattan versus the case where one were to live full-year in New York city and work in Manhattan.

    If I were to live full-year in New Jersey and work in Manhattan, will I have to pay New York city taxes? I went over form IT203 (Non-resident income tax return); it appears that I will have to pay New York state tax and Yonkers nonresident earnings tax, but there is no provision for New York city tax. Could this be a potential tax advantage over the case of living full-year in New York city and work in Manhattan? It is a decent saving.

    Furthermore, if I were to live full-year in New Jersey and work in Manhattan, will I be withheld taxes from New Jersey state, New York state, New York city, and Yonkers?

    I actually don't understand this Yonkers tax. What is it? Is it a defined boundary or region in New York city where one work? If I work in downtown Manhattan, am I part of Yonkers automatically?

    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,834, Reputation: 846
    Senior Tax Expert

    Nov 2, 2007, 01:05 PM
    Absoultely, there are multiple tax advantages from LIVING in NJ while WORKING in NYC.

    First and foremost, if you live in NJ, you do NOT have to pay NY city income taxes, which are pretty hefty. That, by itself, MORE than pays for any commuting costs involved.

    Second, due to a credit given by NJ for the NY STATE income taxes paid, you will pay ZERO NJ taxes on your NY-based income. If that NY-based income is your only source of income, you will have to file a NJ return, but NO taxes will be due and you probably will get a small refund due to the renter's credit.

    Because no NJ taxes will be due, have NO New Jersey taxes withheld. Why give it to New Jersey when you will get it all back at the end of the year? Just keep it and use it yourself!

    BOTH the NY City and the Yonkers City Tax is embedded in the IT 201 and IT203 form. However, if you do not live in Yonkers or NYC, by law you are NOT obligated ot pay taxes to those cities.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Taxes: Living in New York City but working in New Jersey [ 7 Answers ]

I live in New York City but work in New Jersey. I'm married no children. I'd like to find out about what are my taxes for New York City and New York State? Also, any advise for me for the next tax year on what to withhold from my employer? Thank you.

New Jersey vs New York City Income Tax -- Cheaper? [ 14 Answers ]

I am currently moving to the New York area and am wondering which is cheaper: New Jersey Income Tax or New York State/City Income Tax? Just from looking at rates published online, New Jersey is definitely cheaper; however since I will be based and working in NYC everyday is New Jersey still...

Live in New York work in New Jersey [ 4 Answers ]

Hi I live in New York and work in New Jersey every year I loose a lot of money because my employer does not withhold ny taxes in my checks. Is there anything that can be done without hurting them? So they can start to withhold every check ny taxes also, because they take nj but do not withhold ny...

If you live in New York City and work in Jersey, TaxCut doubles your income [ 2 Answers ]

I live in NYC and work in Jersey. This year my employer Gave me several copies of W2's (which, by the way, are not W2-C's): one for federal, whose state information is blank; one for NY, whose state wages approximately match The federal wages, but not exactly (because, I guess, of 401K...

Work in New York live in New Jersey [ 4 Answers ]

I work in NY City but live in New Jersey how do I do my taxes for the state?

View more questions Search