People who live in New Jersey but work in New York City do not have to pay income tax to New York City. But you need to submit a New York non-resident return (IT-203) and a New Jersey resident income return (NJ-1040). Keep reading to learn more about which taxes you need to file and where to file them.
Why New York City?
New York City is famous for being one of the most amazing cities in the world. It has a lively culture and a busy work environment. Many people dream of living in New York City because they are attracted to its charm and appeal. However, living in this place is known for being expensive, which discourages some people from choosing it as their home.
Why New Jersey?
New Jersey is located very close to NYC. It has cheaper housing, a more suburban atmosphere, and it’s easy to commute into New York City. Living in certain parts of Northern New Jersey can make commuting to Manhattan in just thirty minutes possible. This makes living across state lines a desirable choice for many people. Many people are attracted to living across state lines because it is convenient and more affordable.
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Live in NJ, Work in NY Taxes in 2024
With the 2024 tax deadline coming up, people who live in New Jersey but work in New York City are starting to think about their taxes. Everyone wants to avoid double taxation or making mistakes that could lead to trouble with the IRS. If you need to file taxes in two different states, it’s normal to be concerned about paying more.
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Where Do I File Taxes at This Situation?
If you live in New Jersey and work in New York, you will need to file your taxes in both states. Just like many other states in the US, both New York and New Jersey have a requirement for residents to pay state income taxes. Reciprocal tax agreements are in place in some states, which means you only have to pay taxes in your home state. New Jersey and Pennsylvania have an agreement where they both agree to tax each other’s residents. However, New Jersey does not have a similar agreement with New York. Since you live in a different state from where you work, you need to file a tax return in both states.
Do You Pay Double Taxes if You Live in NJ and Work in NY?
If you are not a resident of New York, you will need to file a non-resident return called IT-203. If you are in New Jersey, you will need to file your taxes as a resident using the NJ-1040 form. However, if you are filing two tax returns, it raises the question: do you have to pay taxes twice if you live in New Jersey and work in New York?
Good news for you, no! You don’t have to pay taxes twice. But, if you want to make sure you don’t pay more than you should, it’s important to file your New York return first. This way, when you file in New Jersey, you’ll get a tax credit for any taxes you already paid. This will ensure that you are not taxed on the same income by both states.
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