The simple answer is yes. New Jersey residents who work in New York State must file a New York Nonresident Income Tax return (Form IT-203) and a New Jersey Resident Income Tax Return (Form NJ-1040).

Do you pay double taxes if you live in NJ and work in NY?

Will I Pay Taxes in Both NY and NJ? Not really. While you do have to file taxes with New York and New Jersey, you don’t have to pay double taxes. New Jersey residents will receive a tax credit on their New Jersey return for any tax paid to New York, or another state, on income earned in and taxed to both states.

Is the NY line on your W-2 taxable in NJ?

On the NJ resident return, you will be asked if both of the lines on your W-2 (NY and NJ) are taxable in NJ. They are not. Only the NJ income is, and you will mark the NY income as not taxable in NJ. A few screens later, you will be asked about double-taxed income. This is to calculate the credit in point 1.

Do you have to file taxes if you live in NJ and work in NY?

If you live in New Jersey and work in New York, you have to file tax in both states. According to TurboTax, if you work in New York and live in New Jersey you have to file an income tax return for both states. You must pay New York State income tax on any income you earned while you were working in that state.

What happens if you work in New Jersey and live in NJ?

If you live in New Jersey and work in New York, you will have to file income taxes in both states. Generally, New Jersey will give you a credit for the tax that you paid to New York, but you may still owe additional tax to New Jersey as well.

Do you get tax credit if you work in NJ?

This is more typical because New Jersey gives you a tax credit for tax paid to New York. In cases where there are two wage amounts, it means NJ is taxing some benefits that are pre-tax to NY. In those cases, you would use the NY Box 16 state wage amount for completing your NY return and the NJ Box 16 amount on the NJ return.