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Posted by dleatherwood on January 25, 2007, 2:43 am
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If I were to live in NY, but work in NJ, can anyone explain
exactly how the tax situation would work out? Would I end up
paying more taxes? What about my withholdings in my
paycheck?
Any info appreciated.
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Posted by Vestij.com on January 26, 2007, 5:20 am
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dleatherw...@gmail.com wrote:
> If I were to live in NY, but work in NJ, can anyone explain
> exactly how the tax situation would work out? Would I end up
> paying more taxes? What about my withholdings in my
> paycheck?
>
> Any info appreciated.
You will be required to pay taxes in both states. However, the taxes
you pay to NJ will be a subtratction on your NY return!
Regards,
Cameron Tax Services
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Benjamin Yazersky CPA on January 30, 2007, 11:50 am
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> If I were to live in NY, but work in NJ, can anyone explain
> exactly how the tax situation would work out? Would I end up
> paying more taxes? What about my withholdings in my
> paycheck?
You file as a resident in NY & non res in NJ Your resident
state allows a credit for taxes paid to non resident states
So, your resident state should allow most, if not all the
tax paid to the other state(s)
Differentials in state tax rates are normally the limiting
factor
So, you really don't pay more in state taxes, other than
rate differentials You just have to allocate & both states
do audit these things
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Katie on January 31, 2007, 8:39 pm
Please log in for more thread options dleatherw...@gmail.com wrote:
> If I were to live in NY, but work in NJ, can anyone explain
> exactly how the tax situation would work out? Would I end up
> paying more taxes? What about my withholdings in my
> paycheck?
You would owe tax to both NY and NJ on your NJ earnings. NY
will give you credit for the tax you pay to NH, limited to
the proportion of your NY tax liability that relates to that
"double-taxed" income. So net, you end up paying state
income tax on your NJ earnings at the higher of the two
states' average rates for your filing status, income level,
number of exemptions, etc.
The employer should withhold NJ tax from your earnings, not
NY tax. Whether your withholding would increase or decrease
depends on a number of factors, including your total income
level. Last I looked, NJ rates were lower than NY rates
until you get to a certain income level, and then the
relationship switches and the NJ rates are higher. So it
may depend on your income level.
Katie in San Diego
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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