Double Tax? Living in NY & Working in Jersey? (rent, credit)

[comingsoon]

Can anyone shed some light on living in NY and working in NJ with regards to taxes? I hear that I will be double taxed, however I am finding no information online to substantiate this claim. I am already going to incur additional expenses in rent and tolls by living in NY and this is the deciding factor of whether I forgo living in NY altogether. Please help!!!

Thanks in advance to everyone. I have had nothing but great responses to all of my posts about this move.

[Swimmom32]

My husband yes was taxed working in NY and living in Jersey...Im almost positive that it still exists...and the NJ transit is raising their rates for commuters by 10%..Just incase u use an express bus to get into the city...

[EB2]

I know one of my teachers from high school (who lived in northern NJ) worked in NY (I believe the city) while still living in NJ and was double taxed.

[FL little foot]

Yes, My husband also worked in Manhattan and lived in Jersey. And we paid tax to both.

[Nancy Lynne]

But the theory is that you make more in NYC, so.....its up to you!

[Swimmom32]

Not much more these days its not like it was 10 years ago
my dh works in NJ because its the same salary they were paying him for big corporations in NYC.....unfortuantley corporate america has changed...

[Onizuka]

Is everyone here talking about state income tax or something else entirely?

You are NOT taxed by both NY and NJ for state income taxes. If you live in NJ and work in NY, you pay ONLY NY State income tax and NYC income tax. Since the NY income taxes are higher, you are credited most of that amount on your NJ state taxes. You should only be paying a nominal amount (~$50-$100) on your NJ state taxes for income derived from working in NY state.

[downtownjc]

OP is talking of doing the OPPOSITE of what everyone is referring to--the previous posts referred to living in NJ and working in NY, and OP was referring to living in NY and working in NJ.

True, if you live in NJ (or anywhere) and work in NYC, you have to pay NYC city tax--everyone who works in NYC will pay it, regardless of where they live. (Of course you will also pay it if you live in NYC too.)

If you live in NYC and work in NJ, you should only have to pay NY state and NYC tax. If both NJ and NY tax are withheld you will get a credit for NJ tax withheld on your NY state tax at the end of the year.

[comingsoon]

Thank you downtownjc. You answered specifically what I was asking for. This was very helpful. Thanks to all!

[Swimmom32]

Yes that is correct