| Author |
Message |
    
Cdp
| | Posted on Monday, March 12, 2001 - 4:44 pm: |     |
OK, this one is kind of off-Maplewood-topic, but I hope you'll forgive me.
Once I move to the area, I will be working out of NYC. I don't know much about the tax situation. I understand that the NYC commuter tax has been repealed. But how does the NY/NJ state tax work? It's not truly double-taxation, right? You get to claim other taxes paid as a credit or something?
Thanks to anyone who commutes and/or knows something about this.
-cdp |
Sac
| | Posted on Monday, March 12, 2001 - 5:54 pm: | |
You get to claim a credit on your New Jersey tax return for taxes paid to New York. It isn't exactly dollar for dollar, probably because of differences in rates between the two states, but it is substantial. I'm not sure but I think maybe the credit is for what the New Jersey tax would be on the New York taxable portion of your income. I'm sure that we have a tax expert on the board who can clarify or correct this information ... this is just the observation of one who has been paying these taxes for about 15 years. We have one spouse working in New York and one in New Jersey, as well as other non-New York income such as interest, dividends, etc., so it is only part of our total income which is involved in the calculations. |
Njjoseph
| | Posted on Tuesday, March 13, 2001 - 8:02 am: | |
The commuter tax that was repealed is NYC; Sac is correct about the credit for other jurisdictions. However, this is a credit against your NJ taxes. You will need to file NY state returns, and their tax rate is higher than in NJ. If you are single, or married and both of you work in NY, then you will probably pay next-to-nothing in NJ.
Also, for NY state, your tax bracket is determined by all your income, whether or not it was earned in NY, but you pay taxes only on the portion earned in NY.
Be prepared to pay your income taxes on at least your annual salary to NY state. |
Cdp
| | Posted on Tuesday, March 13, 2001 - 2:52 pm: | |
Thanks for the info. Sounds close to what I might have expected. Seems like NJ gets the raw deal here? Or do they then take the matter up with NY and come to an agreement? Although...maybe we should refrain from such a discussion! We'd be here for days!
-cdp |
Konigen
| | Posted on Wednesday, March 14, 2001 - 9:33 am: | |
Njjoseph,
Do you happen to know what happens when one spouse works in NJ and the other in NY? Also, do you have any recommendations for a good, reasonable accountant in our area?
Many thanks,
Konigen |
Njjoseph
| | Posted on Wednesday, March 14, 2001 - 9:43 am: | |
Konigen, as half of a gay couple, I really don't have the answer to your question. For the past few years, one of us worked in NY and the other didn't. Since we're not married, we file separately. Sorry I can't help you more.
Also, I'm quite savvy with the tax requirements of my own situation (even owning my own small business and paying payroll taxes), that I do my own taxes now. I had someone do them, but they charged an arm and a leg to enter onto the tax forms the numbers I presented him. The accountant spent 2 hours, and I spent 20. That's always the way, but once I bought Turbotax products, I could do the same job he did.
I'm sure others on this board can give you the name of a good accountant. |
Konigen
| | Posted on Wednesday, March 14, 2001 - 10:21 am: | |
Njjoseph, thanks for your reply! |
Townie
| | Posted on Wednesday, March 14, 2001 - 6:26 pm: | |
Konigen,
We use Sirota & Sirota in town (on Highland in the village) and have been very happy with the service. I'm sure they'd be happy to give you an estimate of the cost of their services for you.
k. |
Sac
| | Posted on Wednesday, March 14, 2001 - 9:28 pm: | |
Konigen - When one spouse works in NY and one does not, only the NY source income is taxed. However, the tax rate applied is determined by the total income. (I'm the half that works in NJ and, more to the point, that does the taxes in our family.) |
Konigen
| | Posted on Thursday, March 15, 2001 - 10:32 am: | |
Thank you, Townie and Sac! Much appreciated!
Konigen |
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