live in NY, work in NJ tax question

If I were to live in NY, but work in NJ, can anyone explain
exactly how the tax situation would work out? Would I end up
paying more taxes? What about my withholdings in my
paycheck?

Any info appreciated.

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Reply to
dleatherwood
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You will be required to pay taxes in both states. However, the taxes you pay to NJ will be a subtratction on your NY return!
Regards, Cameron Tax Services
Reply to
Vestij.com
wrote:
You file as a resident in NY & non res in NJ Your resident state allows a credit for taxes paid to non resident states So, your resident state should allow most, if not all the tax paid to the other state(s) Differentials in state tax rates are normally the limiting factor So, you really don't pay more in state taxes, other than rate differentials You just have to allocate & both states do audit these things ___________________________________
-----> real address on hobokeni or hobokenx
Reply to
Benjamin Yazersky CPA
You would owe tax to both NY and NJ on your NJ earnings. NY will give you credit for the tax you pay to NH, limited to the proportion of your NY tax liability that relates to that "double-taxed" income. So net, you end up paying state income tax on your NJ earnings at the higher of the two states' average rates for your filing status, income level, number of exemptions, etc. The employer should withhold NJ tax from your earnings, not NY tax. Whether your withholding would increase or decrease depends on a number of factors, including your total income level. Last I looked, NJ rates were lower than NY rates until you get to a certain income level, and then the relationship switches and the NJ rates are higher. So it may depend on your income level. Katie in San Diego
Reply to
Katie

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