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    Jaylover24's Avatar
    Jaylover24 Posts: 1, Reputation: 1
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    #1

    Apr 11, 2007, 06:42 AM
    Live in NJ Work in NYC
    Hello, All! I have a silly question to ask. I live in NJ and work in NYC. Do I have to file state taxes with NJ and NY or is filing with NJ sufficient?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Apr 11, 2007, 08:17 AM
    Quote Originally Posted by Jaylover24
    Hello, All! I have a silly question to ask. I live in NJ and work in NYC. Do I have to file state taxes with NJ and NY or is filing with NJ sufficient?
    First complete a NY Non-resident return, then the NJ state return. NY will tax you on the money you earned working in NY (although at a tax rate that takes into account all your income). When you figure your NJ taxes you get a credit for the amount you paid to NY (line 39 of NJ-1040 - Credit for Income Taxes Pid to Other Jurisdictions."
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Apr 19, 2007, 02:12 PM
    Agreed. One added note: Since NY state tax rates are so much higher than NJ, it is likely the credit cited will COMPLETELY offset the NJ taxes owed.

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