Tax Questions if You Live in NJ and Work in NY

Tax Questions if You Live in NJ and Work in NY
If you live in New Jersey and work in New York, you have to file tax in both states.

Do I Have to Pay New York State Taxes?

According to TurboTax, if you work in New York and live in New Jersey you have to file an income tax return for both states. You must pay New York State income tax on any income you earned while you were working in that state. File a non-resident tax return for the state of New York and report income and withholding for income earned there. When you file your income taxes for the state of New Jersey, report all of your income no matter where you earned it. Make sure to apply for a credit for any taxes you paid for New York.

Do I Have to Pay New York City Taxes?

According to the City of New York website on Personal Income Tax, the city charges a personal income tax to New York City residents. However, most individuals who live outside of the city like people residing in New Jersey are not subject to personal New York City income tax. An exception to this law is for people who are employees of New York City. These employees must file Form 1127 and pay taxes annually.

Can I Deduct My Commuting and Other Expenses?

Although in some cases you may be able to deduct travel expenses, this applies only if your duties require you to work away from your main place of business for longer than your regular work day. If you live in New Jersey and work in New York, expenses are not deductible because your main place of business is in New York. You determine your main place of business primarily by how long you spend in that location.

Do I Have to File an IT 203 Form?

Residents of New Jersey and other states may have to file form IT 203. This form, issued by the New York State Department of Taxation and Finance, is designed for the income tax return of nonresidents and part-year residents of New York State. New Jersey residents qualify as nonresidents of New York State.