NJ resident but work in both NY and NJ - tax implications?

USA Discussion in 'General Tax Discussion' started by kobeone, Oct 22, 2018.

  1. kobeone

    kobeone

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    Hello,

    If one resides in NJ but one works let's say 85% of the time in NY and the rest in NJ what are the tax implications? Employer is both based in NY and NJ (although payroll is absolutely based in NY - i think) but been spending majority of the time in NY and was just allowed to work couple of days of the week in NJ. What if the ratio is 50/50.

    Would one be better off just working in NY 100% of the time for tax purposes?

    Thanks in advance.
     
    kobeone, Oct 22, 2018
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  2. kobeone

    angelasticcasnyder

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    If you work in New York, but do not live there, you must file a non-resident tax return and report your income earned there. You must also file a resident tax return for New Jersey and pay tax on that same income as well as income from all other sources.
     
    angelasticcasnyder, Nov 15, 2018
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  3. kobeone

    bklynboy VIP Member

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    Keep in mind you get a credit back on your NJ taxes for NY taxes paid so effectively you pay tax based on NJ rates which are lower. Its just more filings and paperwork
     
    bklynboy, Nov 15, 2018
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