Work in New Jersey live in NYC?

Question

Hello,

I hope somebody can help me.

I'm going to be living in NYC and working at a public University in NYC.

How does this work? I know they will take NJ taxes as well as NY and then give me back the NY taxes. Is there a way I can just not take the NY money out, and not owe the goverment all this money come tax time?

I really appreciate any help anybody can give me.

What I assume is that I'll be paying:
NYC taxes
Federal taxes
NY State taxes

NJ Taxes????

I'm sorry - I meant to say that I'm going to be living in NYC and WORKING in NJ

Answer 1

You do not get back all the NY money. NY gives you credit only for either the NY taxes on the income that was also taxed by NJ or the NJ taxes on the income that was also taxed by NY, whichever is less. NY taxes are usually higher than NJ taxes, so the credit is likely to be less than the NY taxes. In any case, NY keeps an amount equal to your NY tax (calculated at a rate based on your total income) on whatever income NJ did not tax.

You pay NJ taxes on your income from NJ only (in this case, your income from work, but not interest on your bank accounts, and things of that nature). You pay NY State, NY City, and Federal taxes on all your taxes. On your NY return, you claim a "resident credit" for either the NY taxes on the income that was also taxed by NJ or the NJ taxes on the income that was also taxed by NY, whichever is less. Therefore, your total tax, after credits, is the sum of the federal tax on all income, the NYC tax on all income, the NY tax on non-NJ income, the NJ tax on a few quirky things that are exempt in NY but not in NJ, and either NY State tax (before the credit) or NJ State tax on the income taxed by both states, whichever is more.

Answer 2

If you live and work in NYC, NJ has no claim to tax your income and can't touch it. They won't be taking NJ taxes from your check and you don't need to file in NJ.

Care to restate your question??