if i live in NY and work in NJ, do i need to pay taxes to both states?

Answer 1

Yes. You file non-resident in NJ and resident in NY. You'll get a credit on your NY tax return for NJ taxes paid.

Answer 2

Yes. As a Resident of New York State you pay Resident New York Income Tax. For New Jersey, you pay as a non-resident. However, the payment you make to New Jersey as a non-resident - becomes a deduction (credit) on the New York State Return.

My suggestion is you hire a tax practitioner or CPA to prepare these taxes for you.
States require an allocation between income and deductions - sometimes the state forms are misleading and ambiguous; consult a professional.

Answer 3

The only tax I believe you would pay to NJ is the occupational privilege tax ($10, $50, depending on the state) It is a one time tax and some states do not even have those taxes. Your State Income Tax and Local Income Tax are paid where you are domiciled, NY. Think about it for a second, tax dollars go state funded programs such as schools, some libraries, etc. These are enjoyed by the citizens of the state for the most part. Therefore, tax dollars are collected based upon where you reside.

Some companies always get this wrong and you have to contact your local tax collector to correct the problem. Double check on the occupational privilege tax in your area. But the SIT and local income tax (or sometimes referred to as a boro wage tax) are domicile dependent.

Answer 4

Depends on which tax your are referring.

Answer 5

i think so........