Do You Need to Pay Taxes in Both NY and NJ? You won’t have to pay New York City taxes, and you won’t be fully double taxed on your state income. Your employer will have withheld New York state taxes throughout the year, and you will then gain a New Jersey tax credit back for those taxes.
Can you work in New York and live in New Jersey?
YES. If you live in Jersey City or anywhere in New Jersey and commute to New York, you have to file in both states. In fact, if you are commuting, your employer is required to withhold your New York taxes and even report your wages earned to New Jersey.
What to do if you work in New York and live in NJ?
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 you have to file taxes 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. 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.
Is it free to live in New Jersey?
Many parts of New Jersey have more of a suburban feel. Depending on where you live, you can park your car in your driveway or apartment parking lot for free, and head to the grocery store, or take the kids to baseball practice. Did you know that, in addition to New York state taxes, New York City levies a city tax?
How to file a W-2 in New Jersey?
W-2 reporting for New Jersey Residents working in New York The New York portion of the W-2: By law, New York employers are required to report in Box 16 of your W-2 the same amount that is reported in Box 1, regardless of what portion of the wages were actually earned in New York.
