Tax Issue

[grifforama]

Hi,

I have been working here fore 2 years, and my place of work has just been relocated to New Jersey from Mid Town Manhattan. I travel to work from my home in Queens every day.

I had a colleague of mine who made some adjustments to his tax at year end because he was working out of NY State. Admittedly he was there for a few weeks at a time, and was staying overnight.

Does anyone know if this is the case for me ? I'll basically be working here 5 days a week.



Regards

[Bevdeforges]

Taxes get complicated in the tri-state area. Be thankful no one in your household works in Connecticut!

Basically, you file a resident state income tax return to the state of New York. And then, you file a non-resident state income tax return to the state of New Jersey. New Jersey grants you a credit for taxes paid in New York (because it's your residence, and thus you are considered "domiciled" there for tax purposes) and if you have no other New Jersey income (investments or rental property), you should wind up not owing to New Jersey - but you do have to file.

Depending on what other state your colleague was working in, he may have passed the threshold for income "earned in" the state, and thus would also have to file a non-resident return.

I'm told that the various state income tax programs for NY, NJ and CT actually handle this kind of thing reasonably well. Otherwise you might want to talk to your employer's personnel department and/or a tax advisor for clarification.
Cheers,
Bev