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Old 07-07-2010, 08:30 AM
 
17 posts, read 101,510 times
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I currently live in NYC, but have been offered a job in NJ, and I'm wondering if anyone has any specific information regarding how this might play out re: taxes.

I ask because previously, while living in NYC, I had a job in Philly, and I got killed on taxes - basically, although all of my income was in PA, I still had to pay state/local taxes for NYS/NYC, so I was paying twice. If this is going to be the case with a job in NJ (all my income will be there), then I'll really have to think twice about this, because the salary isn't really all that great to begin with.

Thanks.
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Old 07-07-2010, 08:59 AM
 
Location: Newton, Mass.
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If you live in NYC, you will pay NYS and NYC resident income tax no matter where you work. You will have to file in NJ and NYS/NYC. You pay the NJ income tax rate to NJ, and then get a credit for what you've paid to NJ on your NYS return. But you will have to pay NYS, which generally has higher taxes, the difference. And you'll also have to pay the NYC resident income tax. This is the same as it should have been when you were working in Philly. You pay to both states, but you don't "pay twice." Essentially you pay the same amount of income taxes as if you lived and worked in NYC.

If you work in NJ and want to pay lower taxes, the way to do that is to move to NJ.
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Old 07-07-2010, 09:14 AM
 
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Thanks - that's very helpful.

Maybe I misunderstood what I was paying previously - but, although I understood that I was getting a "credit," it seemed that this credit was partial, and that I was paying more, in the end, that if I only lived/worked in NYC/NYS. But from what you say, maybe that's not the case?

Yeah, definitely, I would move to NJ if it were a possiblity; it would make a big difference in my commuting costs, but the problem is I own my place in NYC, and there's simply no way I could afford anything in the area of NJ in which this business is located. Plus, even if I could, property taxes and auto insurance are astronomical, so I'm not sure it would even make sense in the end.

Thanks again for the good information.
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Old 07-07-2010, 09:29 AM
 
Location: Newton, Mass.
2,954 posts, read 10,794,109 times
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I think the credit would have been partial only because the NYS tax is higher than the PA tax, and that you were paying the same as if you lived and worked in NYC. If this wasn't more than a couple of years ago you might want to check to be sure you haven't overpaid.

Since you own, it is harder to get out of NYC and move to NJ. You're right that, even if you could move, it may not make sense given the high property taxes in some parts of NJ. Although you can at least deduct the property taxes from federal taxes, so you get some of it back.

Finances aside, there's the question of if you'd want to live there or prefer to stay in NY.
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Old 07-07-2010, 09:40 AM
 
17 posts, read 101,510 times
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Quote:
Originally Posted by holden125 View Post
Finances aside, there's the question of if you'd want to live there or prefer to stay in NY.
Well, it's a very difficult decision, because of both the job/salary itself, and the living/commuting situation. I would love not to have to to battle the tunnel every day, and would love not to have to come home to noise and grunge at the end of the day. But I've been doing some searching on trulia.com and realtor.com, and the only parts of NJ (within reasonable commuting distances of the office) in which I could afford to live are pretty sketchy - and I don't want to jump out of the frying pan and into the fire.

In the end, I may turn down the job - commuting costs (and stresses), middling salary (while still paying NYC/NYS tax rates), and general quality of life (hellish commutes, and still stuck in NYC) all seem to indicate that I should think very, very hard about taking the position. (But in this economy, I think I might have to bite the bullet and take anything that comes my way.)
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Old 07-07-2010, 09:49 AM
 
Location: Newton, Mass.
2,954 posts, read 10,794,109 times
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Quote:
Originally Posted by pphillipp View Post
But I've been doing some searching on trulia.com and realtor.com, and the only parts of NJ (within reasonable commuting distances of the office) in which I could afford to live are pretty sketchy - and I don't want to jump out of the frying pan and into the fire.
Do you mind saying where in NJ it is?
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Old 07-07-2010, 10:00 AM
 
17 posts, read 101,510 times
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Quote:
Originally Posted by holden125 View Post
Do you mind saying where in NJ it is?
Ridgewood-ish.
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