I work in NY but live in NJ, does it mean I'm paying taxes in both states?

Question

Alright, so I know I should know this stuff well already, but I'm not a little ashamed to claim myself to be among those who've had one's family take care of these sorts of things since childhood. I would like to learn a few things (and bare with me because I'm aware of how rudimentary some of these may be):

1. When one works, exactly what kinds of taxes are imposed and are ultimately deducted from the gross earnings?

2. Can the tax deductions be generalized as a fixed percentage that is deducted from your pay?

3. Approximately what is that percentage that comes out of your pay that goes to taxes in the state of NY? In NJ?

4. How is one taxed if one holds a part-time job?

5. Lastly, if one works in NJ but works in NY, does one have to pay doubly?

Answer 1

how the heck am i suppose to know bout taxes!? i'm not old!

Answer 2

Bubblebuddy why would u answer this question if you don't know anything about taxes?

Answer 3

Read working in two states:

http://taxipay.blogspot.com/2008/06/work...

Answer 4

1. You have federal withholding, social security, medicare and state withholding. Some states also withhold disability taxes as well.

2. Social Security and Medicare are fixed percentages. Federal and state withholding are based on allowances claimed on your W-4.

3. Not sure of %s in NY or NJ (I live n MA)

4. Same as a full-time job.

5. You have to file a New York Non-resident return for income earned in New York and a New Jersey Resident return on all income no matter where it was earned.

New Jersey will give you a credit for the lower of the taxes paid to New York or what New Jersey would have taxed the income had it been earned in New Jersey.

The company does not have to withhold NJ tax unless they have a physical presence in NJ.

The result of working in 2 states is that you may pay a small amount of NJ tax or owe no tax at all, but you will not get a refund unless you paid quarterly estimates. You can get a refund or owe to NY depending on what was withheld.

Answer 5

Years ago I lived in Jersey and worked in NYC. You pay NJ state taxes, because that's where you live. Actually, no matter where you work or what state you live in, your income tax, if applicable, is to the state where you live. Your company should be witholding properly assuming they have all your correct information. It doesn't matter if you are full time or part time. You do not pay double taxes. The rates in both states vary greatly depending apon how much you earn.

When I worked in NYC, there was talk about some kind of an extra little annoying tax that NYC would level against people who worked there but lived out of state, under the idea that we were still using the public roads, etc. I don't think that ever took hold.

Answer 6

YES