| Author | Message | ||
     Willis Van Devanter Citizen Username: Vandevanter Post Number: 216 Registered: 2-2003 |
I've never lived in one state and worked in another before, but now that I live in NJ and work in NY, my employer is withholding NY state taxes at the same rate as when I lived in NY, and is not withholding NJ taxes at all. Can someone tell me if this is what is supposed to happen? I guess I was under the assumption that I would have NY taxes withheld at a lower rate and NJ taxes withheld as well. Am I now supposed to be paying estimated taxes to NJ on a periodic basis? | ||
| njjoseph Supporter Username: Njjoseph Post Number: 1958 Registered: 5-2001 |
Yes. Exactly. There is not a reciprocal agreement between NY and NJ. However, you shouldn't be seeing a deduction for NYC tax. When you file your taxes, you will need to fill out the credit for taxes paid to other jurisdictions. These taxes will offset your NJ taxes. However, if you pay to NY more than your tax bill to NJ, you would not get a refund. | ||
| peteglider Citizen Username: Peteglider Post Number: 115 Registered: 8-2002 |
I live in SO, work in NYC. Basically, b/c the NY tax rate is so much higher than NJ - I owe little or no NJ taxes (this year I owed $81 to NJ). Although a few years ago (when married, higher hh income) -- I did make estimated NJ tax payments myself. Do you have TurboTax or other tax program? If you do -- or can hold of a copy from someone who's already filed -- you can enter the key info and play "what-if"s (if you are so inclined). I am pretty conservative financially -- my advice would be to pay something to NJ so they don't slap you with fines or interest, then get back if its excess. Good luck! Pete | ||
| sportsnut Citizen Username: Sportsnut Post Number: 416 Registered: 10-2001 |
Willis - the reason why the amounts withheld for NYS tax haven't changed is because the rates for residents and nonresidents are the same. The difference is in the type of income that is subjected to tax. As a resident of NY the state may tax all of your income no matter where it is earned, however as a nonresident NY may only tax income that is earned in NY. If you are earning a significant amount of money or if you have significant interest or dividend income you should be paying NJ estimates. Also, if you have a spouse who earns money in NJ you may want to up their withholding especially if you are the primary earner. Your employer should withhold (unless you tell them otherwise) NY tax based upon your salary only. When it comes time to pay NJ tax the combination of two incomes would significantly increase your NJ tax due and the credit for taxes paid to NY will not be sufficient. | ||
| oots Citizen Username: Oots Post Number: 79 Registered: 6-2001 |
also, if you travel, you can allocate your ny wages for days out of ny-this will reduce your credit and you will owe $$ to NJ(but will save tax $$ overall) oots | ||
| Willis Van Devanter Citizen Username: Vandevanter Post Number: 221 Registered: 2-2003 |
Thanks, folks. My taxes are getting too complicated. Looks like I'll have to bite the bullet and get an accountant. | ||
| snshirsch Citizen Username: Snshirsch Post Number: 35 Registered: 1-2003 |
May I suggest Marco DeLuca, he's at 412 Ridgewood Road in Maplewood. Just across from the small set of stores on the Maplewood/SO border. He's great. You can reach him at 762-9200. | ||
| Willis Van Devanter Citizen Username: Vandevanter Post Number: 222 Registered: 2-2003 |
Thanks. That was going to be my next thread! | ||
| argon_smythe Citizen Username: Argon_smythe Post Number: 66 Registered: 5-2001 |
Just go to H&R Block or Marco DeLuca or whatever one year, then copycat exactly what they did the next years. Chances are your financial circumstances don't change that much year to year and it will mostly be fill in the blanks. It is actually not horribly terribly complicated but tricky until you know what it is "supposed" to look like. | ||
| mrmaplewood Citizen Username: Mrmaplewood Post Number: 76 Registered: 5-2001 |
Willis: Welcome to the Great Commuter Tax Conundrum. New Jersey's tax base is concentrated in property tax. New York's tax base is concentrated in income tax. As a New Jersey resident working in New York, you get the short end of both sticks. |
