I am working in NJ, but I just moved to NYC. Is that I can save more if I keep my NJ address as my primary residency and use my NYC address as my secondary home? so I can enjoy lower state tax from NJ and mortgage interest allowance from federal? is that true?
2006-07-27 09:54:09 · 5 answers · asked by eg_lwc 1 in Business & Finance ➔ Taxes ➔ United States
New York State and New York City both follow a 183-day rule: if you are physically present for more than 183 days in a year, you are considered a resident and are taxed as one regardless of where your primary residence is located. You could end up being treated as a resident of both states, which could really increase your tax bill.
For federal purposes, the determination of your primary residence can be a factual question--you can't just declare a residence as your first home and make that definitive. Relevant factors include where you spend your time, where you vote, where you hold your driver's license, etc.
2006-07-27 13:14:41 · answer #1 · answered by NotEasilyFooled 5 · 0⤊ 0⤋
Don't try it. NY regularly checks its rent rolls to see who lives in the city but does not file as NYC resident. You still need to pay NJ tax on your wages but you'll get a credit in NY. If NY audits you and sees that you were actually a resident, you will have underpaid NY tax on all of your worldwide income and overpaid NJ tax on all of your worldwide, non-salary income.
You will get the mortgage interest allowance on both your federal and New York tax returns.
2006-07-27 13:25:29 · answer #2 · answered by taxmannyc 3 · 0⤊ 0⤋
Why on God's green earth would you want to live in NYC and commute out of the city to work? Setting aside the fact that most of New York is a cesspool, the traffic makes a person want to stab themselves in the eye with a fork. Then there is the incredible expense. Not to mention the crime.
2006-07-27 10:00:32 · answer #3 · answered by Anonymous · 0⤊ 1⤋
My experience in Hoboken exchange into 25 years in the past even with the undeniable fact that that's a occurring place! this is high priced i'm specific yet in line with risk much less high priced than decrease ny which may well be my #a million determination if I wasn't making plans on a motor vehicle. i'm envious!
2016-11-03 03:28:49 · answer #4 · answered by ? 4 · 0⤊ 0⤋
1) income taxes are based on the location of the office
2) property taxes are based on the location of the property, taxes are paid for each estate
Panacea: your paranoia is hysterical
2006-07-27 11:55:17 · answer #5 · answered by rmpbklyn 4 · 0⤊ 0⤋