Living in NJ but working in Manhattan question--taxes (New York, York: credit, home)

[Winkdaddy]

My wife and I currently live and work in Manhattan. Next month we are both moving to Hoboken, NJ

I work from home 100% of the time (my office is based in Atlanta) and my wife's company is also based in Atlanta but they have a small office in Manhattan where she works 3 days a week and at home 2 days a week.

My two questions:

1. I heard she will have to file STATE taxes in both NJ and NY...is this correct?

2. Does my wife have to pay that local 3.7% of gross income New York CITY tax as well even though we would live in NJ?

Thanks!!!

[Mightyqueen801]

Originally Posted by Winkdaddy

My wife and I currently live and work in Manhattan. Next month we are both moving to Hoboken, NJ

I work from home 100% of the time (my office is based in Atlanta) and my wife's company is also based in Atlanta but they have a small office in Manhattan where she works 3 days a week and at home 2 days a week.

My two questions:

1. I heard she will have to file STATE taxes in both NJ and NY...is this correct?

2. Does my wife have to pay that local 3.7% of gross income New York CITY tax as well even though we would live in NJ?

Thanks!!!

1. Yes. She will first do herr NYS Non-Resident tax form. Then, when she completes the NJ form, in the section about "credit for taxes paid to other jurisdictions," she will fill out the info on taxes she paid to New York. It will be significantly higher than the Jersey tax, so it cancels out any tax due to the state of NJ. I am giving you this info just about one tax return though--you are working in NJ, so if you file together, it could be a little more complex, but that's the basics.

2. No. There was a time when Jersey residents had to pay the NYC tax, but that ended a number of years ago.