State Taxes?

Question

I live in one state and work in another. Should I owe state taxes at the end of the year to my resident state?

I live in New Jersey and work in New York.

Answer 1

No, you will file with that state that you live and claim the taxes you filed in the other state and you will get credit for it ... not a big or unusual situation ...

Good Luck!

Answer 2

Generally, a resident (New Jersey) is taxed on his total income, and a nonresident (New York) is taxed on the income income in the nonresident state. However, a mitigating factor might be the availability of a credit on the New Jersey return for part or all of the tax paid to New York. Look for a line on the New Jersey return for something like "Credit for taxes paid to another state." I can't access the New Jersey Division of Taxation's web site right now (tried it two different ways), or I'd be able to direct you to a line number on the return and the way the credit is calculated. Here's a link for you:

http://www.state.nj.us/treasury/taxation/index.html

Look for Forms for Individuals, and find both the form and the instructions.

I'm haven't dealt with the specifics of these two neighboring states for a couple of years, but the general rule is that if you are taxed in another state on income that is also taxed by your resident state, a credit is available. That credit may not be for all of the tax paid to the nonresident state, simply because the tax rate in the nonresident state may be higher than in your resident state.

Answer 3

Every state is different, could you expand your question to include the name of your state of residence and the name of the state you work in?

Answer 4

Unless the states have a reciprocity agreement, you owe taxes in both states. When they have a reciprocity agreement you will only owe in your home state.

Answer 5

From one state to the other i dont know but call the irs and they will help you with that. bettyk