I was offered a job that will be in NYC for 3 months and then move to NJ for the remained of 2007. I understand I will have NYC and state taxes withheld for the 3 months. What are the implications of this situation? Will I be taxed on my entire yearly income in NY or just for 3 months? How will the tax credits work?
2007-02-08 02:47:36 · 2 answers · asked by Wildeklave 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you live in NJ for the full year, then you will file a NY nonresident state return to report and pay NY taxes on those three months you worked in NY. Also, as a NYC nonresident, you are not subject to NYC taxes. NJ will tax you on your income for the full year, and you can claim a credit against your NJ state tax for the NY state tax you paid on the 3 months of salary you earned in NY that is being taxed by both jurisdictions.
2007-02-08 02:54:49 · answer #1 · answered by jseah114 6 · 0⤊ 0⤋
As a non-resident of NY, you'll only be taxed on the income earned in NY. You'll be taxed on all income in your state of domicile, NJ. NJ will give you a credit for the taxes paid to NY and NYC.
2007-02-08 11:48:39 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋