Do I pay more taxes if I live in NJ if I work in NYC? (for rent, to live in)

[Jackal1]

Originally Posted by lammius

No.

There's no such thing as a commuter tax, at least not since the 1990s.

If you live in NJ but work in New York, you pay New York State income tax. You file a New York State income tax return as a nonresident and you declare all New York State income and pay the appropriate income tax to New York State.

You also file an income tax return with New Jersey. If you have any income earned in NJ, you declare it and pay the appropriate tax. If all your income comes from NY, you declare that and NJ does not take any tax on that NY income.

Exactly

[Mightyqueen801]

Originally Posted by lammius

Not true. Read my post above.

Correct. You pay NYS tax as a non-resident.

[Jackal1]

Originally Posted by Mightyqueen801

Correct. You pay NYS tax as a non-resident.

Just like I said.

[nybbler]

Originally Posted by Dislocated

So while working in Midtown, it's more beneficial to have my primary residence in NJ and not NYC for tax purposes?

Not your primary residence, your only residence. If you maintain any residence in NYC they want that 3.6% and along with parking enforcement, that tax collector is one of the few efficient parts of the NYC government.

[Jackal1]

Correct

[Annikan]

are you going to keep your NYC residence and rent it? If so, many of your expenses can be written off as operating costs of the rental unit. If you are living in NJ, as pps have said, you will file a federal tax return, a NYS return, and a NJS return. You usually get money back from your NYS return and it pays for the NJS return. We do all of our taxes online and websites like Turbotax, Taxslayer, TaxACT, etc make it really easy. It does it all for you.

[rocknyc]

Who keeps this myth going?

I used to live in Queens and worked in Manhattan. My friend had a room available for rent in Jersey so I moved out to NJ but left my personal info at work alone (Any work mail was sent to my folks place in Queens). I did this for 5 years and when I finally got married, i switched my personal info at work to my new address in NJ. As soon as I got my first paycheck (with my NJ address), my biweekly paycheck went up almost $300. So for 5 years, I unnecessarily paid $36k in NYC resident taxes that I didn't need to pay. The NYS/NJ state taxes usually cancel each other out (for the most part) at tax time. The big difference is not paying NYC resident taxes.

So to answer your question...Yes if you live in NJ and work in NYC, you WILL PAY LESS IN TAXES.

[DefiantNJ]

Originally Posted by rocknyc

Who keeps this myth going?

I used to live in Queens and worked in Manhattan. My friend had a room available for rent in Jersey so I moved out to NJ but left my personal info at work alone (Any work mail was sent to my folks place in Queens). I did this for 5 years and when I finally got married, i switched my personal info at work to my new address in NJ. As soon as I got my first paycheck (with my NJ address), my biweekly paycheck went up almost $300. So for 5 years, I unnecessarily paid $36k in NYC resident taxes that I didn't need to pay. The NYS/NJ state taxes usually cancel each other out (for the most part) at tax time. The big difference is not paying NYC resident taxes.

So to answer your question...Yes if you live in NJ and work in NYC, you WILL PAY LESS IN TAXES.

Not true if you own property. We used to live in Queens and then bought a place in Bergen County. When we moved, we of course stopped paying NYC tax. But we had to pay our towns property taxes that are actually higher than NYC income tax. The only difference is that they are not deducted from every paycheck. Moreover, NJ state income tax rules barely allow any deductions. So we can not really deduct mortgage interest and our effective NJ task rate always ends up being more than NYS. So we also have to pay NJ. So in summary, we are paying more in taxes when we moved to NJ.

[cw30000]

Originally Posted by Jackal1

You may pay a commuter tax but not NYS residence tax if your not a resident.

There is no NYS residence tax. He works in NY and be taxed in NY. What he paid in NY will offset his NJ tax liability.

[fedguy2]

lol