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I processed mine using TurboTax today (but I haven't pulled the "File" trigger yet). Somehow I owe NYS $11 and I'll get $29 back from NJ.
Complicating my situation, I worked in NJ until May, THEN started working in NY.
Further complicating it, I moved in September from one NJ address to another. When filling out the NJ form, I was asked to enter how much I paid in rent during 2007 at the address I lived at on October 1. Well I only paid 4 months' rent at that address. Can I claim the amount I paid at the other place I lived for 8 months?
After carefully reading the NJ Tax return guide, it seems that only a portion of NY Tax can be deducted as credit for NJ Tax.
Example: living in NJ, joint return, one NJ income 50K, one NY income 50K. total income 100K.
NY base tax (line 44) is 6K, total NYS Tax (line 50) is 3K (50% of 6K).
Max allowable NJ credit percentage: 50K/100K = 50%
Allowable credit for NJ Tax: 3K*50% = 1.5K
NJ Tax (based on 100K): 5K
NJ Tax after credit: 3.5K
This does not look right. 100% of 3K should be allowed as credit.
Did I miss sth? Thanks in advance!
Thanks!
If one person works in New York and the other works in New Jersey, you are better off filing as married,filing separate. Even though New Jersey requires you to file with the same filing status as you did with the Federal return, you can use a different filing status if one spouse works out of state, so both incomes are not taxed by NJ.
Last edited by colleeng47; 03-21-2008 at 06:20 PM..
Reason: spelling
I processed mine using TurboTax today (but I haven't pulled the "File" trigger yet). Somehow I owe NYS $11 and I'll get $29 back from NJ.
Complicating my situation, I worked in NJ until May, THEN started working in NY.
Further complicating it, I moved in September from one NJ address to another. When filling out the NJ form, I was asked to enter how much I paid in rent during 2007 at the address I lived at on October 1. Well I only paid 4 months' rent at that address. Can I claim the amount I paid at the other place I lived for 8 months?
As a NJ resident, you must claim all your income regardless of where you earned it. So your NJ and NY income would be combined for your NJ return. As for what you do in NY, you would have to contact the NY State Department of Taxation.
As far as the question on your rental, you answer exactly as the question is asked. You put down how much rent you paid on the apartment you occupied on October 1. It doesn't matter how long you lived there. The October 1 address is the only info the form requires because that's the date set by the State for determing rebates. In fact, if you sold your house on September 30th, and paid taxes all year, and for some reason didn't close on your new home until October 2, and paid taxes on that house, you would NOT be eligible for the rebate because you didn't own and occupy either house on the 1st of October. Sounds strange, but thems the rules.
I have an employee who lives in NJ but works with us here in NYC. Our payroll company deducts NY city tax from her check and she is being told by her accountant that because she lives in NJ she doesn't have to pay NY city tax. I always thought if you worked in the city regardless of where you lived, you had to pay city tax.
I have an employee who lives in NJ but works with us here in NYC. Our payroll company deducts NY city tax from her check and she is being told by her accountant that because she lives in NJ she doesn't have to pay NY city tax. I always thought if you worked in the city regardless of where you lived, you had to pay city tax.
You used to, but it ended some years ago. Now you only pay city tax if you live in the city.
After carefully reading the NJ Tax return guide, it seems that only a portion of NY Tax can be deducted as credit for NJ Tax.
Example: living in NJ, joint return, one NJ income 50K, one NY income 50K. total income 100K.
NY base tax (line 44) is 6K, total NYS Tax (line 50) is 3K (50% of 6K).
Max allowable NJ credit percentage: 50K/100K = 50%
Allowable credit for NJ Tax: 3K*50% = 1.5K
NJ Tax (based on 100K): 5K
NJ Tax after credit: 3.5K
This does not look right. 100% of 3K should be allowed as credit.
Did I miss sth? Thanks in advance!
Thanks!
Bringing back an old thread.
I believe xyli37 is correct.
If one spouse works in NJ and other works in NY, while both live in NJ
And for simplification, if both spouses earned exact same income
Then NJ will only credit 50% of NY taxes paid.
Anyone else run into this issue. What do you do? Does your accountant do all the work for you? Are there any tax programs that let you e-file all 4 returns (federal joint, ny single, nj single, nj single) and allow you to easily split a joint into two single returns?
I am in the similar position but my wife also works in NYS, not in the city. NJ does not allow a lot of the deductions so the net tax you end up paying to NJ is always higher than in NYS. We always end up paying $1000 - $1500 to NJ in addition to what we pay NYS.
I get an accountant to do this. I have enough problems and stress in my life so that I don't deal with this ridiculous complexity...
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