i'll be parting with my beloved manhattan apartment for the tempting space and privacy of a jersey house
i understand that by closing before 12/1 i can amend my 08 for a fast $8k
i imagine that by no longer being a resident of NYC i'll save a good chunk of income tax
i'm moving only 20-something miles, so i don't believe i can get that 'relocation' credit...
i'm clueless about commuting credits, except that there's a pre-tax withdrawal allowed for certain expenses (trains, maybe parking?)
my direct question (not that i don't appreciate comments regarding the above): is there a handy how-to guide for first-time home owners / ex- NYC'ers / etc? i know i'm the 50,000,000th person to do this, but trying to wade through lots of googled results hasn't gotten me the 'checklist' i was hoping for ..
That deduction is available only if you change physical locations of employment. Doesn't sound like you are.
Employers can provide tax-free commuting assistance, but there's nothing you can do on your own.
For tax information about owning a home, IRS Publication 530. For information on the loan and closing process, HUD has lots of booklets available, many of which are required to be given to you by the lender. I'd also suggest you ask your real estate agent.
-------------- Phil Marti, VITA Volunteer Clarksburg, MD
Will you still be working in NY? If so, you will still be subject to NY state income tax on your wages, even if you earn some of your salary by telecommuting from your NJ home. However, you will be able to exclude from your NY income any part of your salary that is earned by performing services outside NY (on business trips) that cannot, by their nature, be performed at your NY office.
As a nonresident of NYC, you are correct that you will not be subject to the NYC individual income tax even if you work in the city.
Assuming you're moving mid-year, you'll file part-year resident returns with both NJ and NY in the year of change. Your NJ income will include all of your income earned after the change of residence. Your NY income will include all of your income earned during the part of the year when you were a resident, plus your NY source income earned after you became a nonresident. NJ will give you credit for the tax you pay to NY on your NY source income earned after you became a NJ resident, limited to the NJ tax on that income.
In following years, when you are a full year resident of NJ, you will file a resident return with NJ reporting all of your income from all sources, and a nonresident return with NY reporting your NY earnings plus any other NY source income. Again, NJ will give you credit for the NY tax you pay on those earnings.
You should be aware that income from intangibles, such as interest and dividend income, generally has its source at the residence of the owner. Interest on a savings account or CD in a NY bank, for example, is not NY source income after you become a nonresident.
You won't be eligible for a moving expense deduction because you are not moving due to a job change, but for personal reasons.
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