I work in NYC, but live in NJ. What are the tax implications?

Slay
Slay Member Posts: 1 Newcomer
in Live Q/A Event

my first time working in NYC. Am I paying the NYC Local Tax and NY. I can arrange to work 1 day a week in our NJ office, and 2 days in our NY.

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 340

    Hi,

    NY and NJ DO NOT have a reciprocal tax agreement. So you must file a NY return as well as a NJ return. On your NY return, you will also report your NYC taxes. We will guide you through the process when you start your state returns. File a Non-resident NY and NYC return.

    All your income is reported on your Resident tax return, which is New Jersey. Make sure you claim a credit for taxes paid to another state (NY) on your NY tax return so you don't get double taxed in NJ.

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