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Hi everyone, I hope I'm in the right section. Here is my situation.
I have a new job for a company based in MIA, but my first assignment is in NYC. The jobs requieres me to be in NYC 5 days a week for, at least, two years.
We have discussed this in family and, because my wife has relatives in NJ, and we have two little kids (3, 5 years old) we decided to rent a house in NJ for theupcoming two years.
Paychecks will be issued from the company in Miami, I'll be living in NJ and commuting daily to NYC.
Now, the million dollar question: Where should I pay my taxes? FL, NJ or NY?.
Not sure. You will have to file a NJ income tax return. I am sure of that.
You may have to file a NY state income tax return. What you are looking for is to see if their is a tax treaty between NY and NJ that says you only owe NJ. I think there was years ago but not sure about now. You can Google tax treaties. Also read the instructions for the NJ tax return, it will tell you what to do about NY
You will also have NYC taxes.
In addition to Federal Income taxes which are paid on your income, regardless of where your company or you are located, you will also pay state income taxes where you work (NY). You will additionally pay property taxes where you live (NJ).
Florida doesn't even have state income taxes, but, like any company, employees pay state taxes where they work, not where the corporate headquarters are located. The only exception would be if the employee actually worked out of the corporate headquarters and traveled to another state to work.
NY and NJ do not have reciprocity, so your employer should withhold NY income taxes from your paycheck. You should file a NY nonresident return, NY does allow some deductions so maybe you'll be able to get some of your withholding back.
You'll also need to file a NJ return. NJ will give you a credit for the taxes paid to NY, in most cases this will cover all of your earned income (since you can only take a credit for the income that is subject to both NY and NJ tax) but if you have any other income (interest, dividends, capital gains, etc.) you'll pay NJ taxes on that.
I believe NYC did away with their nonresident income taxes a long time ago. That would be withheld by your employer as well if I'm not correct on that one.
NY and NJ do not have reciprocity, so your employer should withhold NY income taxes from your paycheck. You should file a NY nonresident return, NY does allow some deductions so maybe you'll be able to get some of your withholding back.
You'll also need to file a NJ return. NJ will give you a credit for the taxes paid to NY, in most cases this will cover all of your earned income (since you can only take a credit for the income that is subject to both NY and NJ tax) but if you have any other income (interest, dividends, capital gains, etc.) you'll pay NJ taxes on that.
I believe NYC did away with their nonresident income taxes a long time ago. That would be withheld by your employer as well if I'm not correct on that one.
This is your answer. I'd also confirm: If you don't live in NYC, you don't pay the NYC city tax on W-2/1099 income you make working there.
For most people who don't have a bunch of savings & investment income, you don't pay New Jersey anything. That's why New Jersey has such a killer property tax. All those high income people who commute to Manhattan don't pay NJ state income tax.
Are you sure about that?. I will not be living in the City, nor I'll be working for the City.
I thought you said you would be working in the city 5 days a week for 2 years. I think you will be paying their tax. In some cases you may get a credit for part of the tax paid on your NJ tax return. This will also be covered in the instructions for the NJ return.
I thought you said you would be working in the city 5 days a week for 2 years. I think you will be paying their tax. In some cases you may get a credit for part of the tax paid on your NJ tax return. This will also be covered in the instructions for the NJ return.
That is not how NYC city tax works. If you are not a resident of the city, you don't pay it.
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