If I work in one state and live in another do two state taxes come out of my check?

Question

i live in NJ and was thinking about getting a job in NY (nyc) and heard that on my paycheck 2 state taxes would b taken out. one for each. is that true? and if so, how much. thanks for your time.

Answer 1

Employers almost exclusively withhold taxes for the State where you are working.  This will complicate things for you a bit.

You'll need to file a NY Non-resident return showing only the NY income.  Then you'll file your usual NJ Resident return showing all income world-wide.  NJ will give you a credit for the NY income taxes paid.  With a bit of luck, this should wipe out your NJ tax liability pretty much.

Effectively you'll pay income taxes on the NY income at the higher of the 2 states' rates; you will not be double taxed.

Answer 2

When I lived in Delaware and worked in Maryland , only Maryland taxes were taken out of my check. However, when I prepared my state  tax return I got money back for Maryland and owed money in Delaware.

Answer 3

i don't think so. the only taxes that should be taken from your paycheck are the ones in thew state you are working in. where you live should have no part in it at all.

Answer 4

yes two state taxes will come out of your check and that depends on how much the taxes are for the state.

Answer 5

Its possible.  NJ has a right to tax your income since you live there.  NY has a right to tax your income since you work there.

When you file your taxes, you will get a credit for the taxes paid to each state.