I'm no accountant but from what I know from my previous job....
Having your permanent address in NJ won't automatically exclude you from having to pay taxes in NY. Living in one state and working in another can get really complicated since the laws different from state to state. Both of the state's rules can be taken into consideration when determining what income is subject to taxation and from which state. There is also something called Reciprocity for situations like these which is basically an agreement to only be held liable for taxes from your resident state. But you have to meet certain requirements in order to qualify which is again based on state to state rules. There are also some limitations as to which states uphold this. You'd be better of asking a CPA (or even your payroll department) about this since it can get really tricky.
That's as far as I know from what little experience I have with this. So, don't quote me on anything. Hope you find the best way to get your money's worth!
From my experiences, I work in Philadelphia and use my New Jersey address. Philadelphia has a crazy thing called "city wage tax" that I was able to avoid by using the New Jersey address. But it doesn't work anymore because they can tax people from out of state NOW that work in the city. Besides the city wage tax, I get taxed at the PA rate then when its time to file my taxes, my accountant just credits it.
Comments 2
Having your permanent address in NJ won't automatically exclude you from having to pay taxes in NY. Living in one state and working in another can get really complicated since the laws different from state to state. Both of the state's rules can be taken into consideration when determining what income is subject to taxation and from which state. There is also something called Reciprocity for situations like these which is basically an agreement to only be held liable for taxes from your resident state. But you have to meet certain requirements in order to qualify which is again based on state to state rules. There are also some limitations as to which states uphold this.
You'd be better of asking a CPA (or even your payroll department) about this since it can get really tricky.
That's as far as I know from what little experience I have with this. So, don't quote me on anything.
Hope you find the best way to get your money's worth!
Reply
Reply
Leave a comment