Friday, July 1, 2011

Work in New York, live in New Jersey, how should I file my taxes in NJ


Work in New York, live in New Jersey, how should I file my taxes in NJ?
My husband works in NY, and we live in NJ. My question is how do I file this for NJ? Do we get double taxed, should I expect a refund in any way? Where do I find the amount taxed? Is it based off of the entire income?
United States - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
your tax home is where you work except for temporary short assignments you file NY state and non resident NJ
2 :
You file a non-resident tax return with NY. You also file a tax return with NJ, but you can probably deduct whatever you paid to NY.
3 :
NJ residents : NJ resident return Works in NY: NY Non-resident return You'll pickup up NY income on Both state returns. You will then include the NY taxes paid on NJ return as a tax credit to offset the NJ taxes! This is how you're double taxed on the NY income but then it's resolved by claiming the NY taxes as a credit on the NJ return. Note that the NY tax credit will be limited to NJ's tax rate so... 1. If NY's tax rate is 10% and NJ is 8%, then the tax credit will be limited to the NJ 8% amount. 2. If NY's tax rate is 6% and NJ is 8%, then you'll get to claim the entire NY tax as a credit against NJ's income tax. You should seek a local tax professional to assist you further!