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I could see NJ/PA being relatively even in terms of both pay and number of people working in the other state. Lots of jobs in Philly for NJ residents, but it’s the opposite in the rest of the state.
What sparked this question is that I have a choice to work in NYC or Philadelphia hospitals.
PA is closer to me,but NY has better pay AND working conditions. Both cities have world class hospitals.
But the working conditions are just flat out better in NYC. But then I saw that Ny does not have a tax agreement like PA does.
It really depends on "better pay". Once you have that you can run the tax numbers. Judging from work conditions and better pay as you say, I think I would lean towards NYC in your case. Don't forget to factor in commuting costs. I also didn't mind my daily commute (via train) to NYC; No wear and tear on the car, and I can rest/sleep/read on the train, NJ traffic can be super stressful too.
I know people who live in PA and work in NJ. Don't know anyone who does the opposite.... cost of living of the areas in PA that within driving distance of NNJ are pretty low comparatively.
They do. NJ lets you take credit on any income tax paid to another jurisdiction. Just as you still file NJ taxes if you work and pay in NY state, you get to do that for Philadelphia as well.
FYI, the jurisdictions where a person resides must to give credit for income tax paid to the jurisdiction where the work is performed.
You won't pay taxes on the same money twice, even if you don't live or work in any of the states with reciprocal agreements. You'll just have to spend a little more time preparing multiple state returns, and you'll have to wait for a refund for taxes unnecessarily withheld from your paychecks.
Correct. My wife lives with me in NJ, but works in NY. I do our taxes and I always have to fill out the NY tax info first to get the info needed to apply the tax paid to NY as a credit to another jurisdiction on the NJ tax form.
The thing that baffles me is she always gets a nice refund from NY, but we always end up having to owe NJ another $100 at least. Does this mean NY income taxes are much lower than NJ? I am not an expert and just let the tax software do all the figuring, but always wondered why we always get nice refund from NY and owe for NJ, even after the property tax credit?
Correct. My wife lives with me in NJ, but works in NY. I do our taxes and I always have to fill out the NY tax info first to get the info needed to apply the tax paid to NY as a credit to another jurisdiction on the NJ tax form.
The thing that baffles me is she always gets a nice refund from NY, but we always end up having to owe NJ another $100 at least. Does this mean NY income taxes are much lower than NJ? I am not an expert and just let the tax software do all the figuring, but always wondered why we always get nice refund from NY and owe for NJ, even after the property tax credit?
Sounds as if you aren't having enough withheld.
Except for a couple of years in JC, I always worked in NY. Never owed a dime to NJ. I was a single filer, so it has to be your income.
Correct. My wife lives with me in NJ, but works in NY. I do our taxes and I always have to fill out the NY tax info first to get the info needed to apply the tax paid to NY as a credit to another jurisdiction on the NJ tax form.
The thing that baffles me is she always gets a nice refund from NY, but we always end up having to owe NJ another $100 at least. Does this mean NY income taxes are much lower than NJ? I am not an expert and just let the tax software do all the figuring, but always wondered why we always get nice refund from NY and owe for NJ, even after the property tax credit?
I used to work in NYC while living in NJ. If I remember correctly, NYS income tax was higher than NJ’s, so the credit I got fully covered what NJ might tax. However, there was some item that NYS didn’t tax, but NJ did, so there was a small amount, less than $100 that was owed. I think it was company health care contributions or something related to that.
I used to work in NYC while living in NJ. If I remember correctly, NYS income tax was higher than NJ’s, so the credit I got fully covered what NJ might tax. However, there was some item that NYS didn’t tax, but NJ did, so there was a small amount, less than $100 that was owed. I think it was company health care contributions or something related to that.
Interesting. I do know that NJ doesn't take a dime out of her regular paychecks, just NY State. But once I type in the credit paid to other jurisdiction, NJ tax owed drops to about $100 from $700
Correct. My wife lives with me in NJ, but works in NY. I do our taxes and I always have to fill out the NY tax info first to get the info needed to apply the tax paid to NY as a credit to another jurisdiction on the NJ tax form.
The thing that baffles me is she always gets a nice refund from NY, but we always end up having to owe NJ another $100 at least. Does this mean NY income taxes are much lower than NJ? I am not an expert and just let the tax software do all the figuring, but always wondered why we always get nice refund from NY and owe for NJ, even after the property tax credit?
probably has to do with you claiming all investment income in NJ (which you should)
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