Nyc Resident Working In Nj

[Timon]

s About Taxes)/NYC resident working in NJ Advertisement Expert: Neil Johnson(The Tax Dude®) - 2/3/2008 I live in NYC but im working in NJ. I started to do my taxes. It seems now since my company only takes out NJ taxes that I owe almost 2000 in new york city and state taxes... I only make about 38k a year. Is this possible?

[Cater]

Sean,

If you live in one state(New York) and work in another(New Jersey) you must first pay state income tax to the state in which you work(New Jersey) on the wages earned in that state. The non-resident state(New Jersey) will not directly tax you on your other income.

The state where you live(New York) will tax you on all of your taxable income from all sources, including wages earned in another state(New Jersey). Your resident state(New York) will allow you to claim a credit for any non-resident state income tax paid to another state(New Jersey) on income taxed by both states.

New York City imposes a personal income tax on City residents. The tax is based on the New York State personal income tax and is administered and collected for the City by the New York State Department of Taxation and Finance. In calculating the City tax, a resident uses the same filing status and taxable income as for State purposes but applies different tax rates and credits. Regards,

Neil Johnson

The Tax Dude™

www.thetaxdude.com

[email protected]