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Is there tax reciprocity between NJ and NY?

Writer Emma Jordan

Note: NY and NJ do not have reciprocity. If you work in NY and live in NJ, you will need to pay NY income taxes as a non-resident and pay NJ income taxes as a resident. However, NJ residents can take a tax credit for taxes that have been paid to other jurisdictions.

Do you pay NYC taxes if you work remotely?

It means that if you usually worked in New York but are working remotely from your home in New Jersey during the pandemic, you’ll still owe New York state income taxes, said Alan Sobel, president of the New Jersey Society of Certified Public Accountants.

What to do if you work in New York and live in NJ?

File a non-resident tax return for the state of New York and report income and withholding for income earned there. When you file your income taxes for the state of New Jersey, report all of your income no matter where you earned it. Make sure to apply for a credit for any taxes you paid for New York.

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.

Who is New Jersey resident working from home?

Daniel Rosa doesn’t miss his 90-minute — on a good day — commute from New Jersey into New York City, a bygone hassle for the systems administrator, who is working from home because of the coronavirus pandemic. Yet even though Rosa doesn’t go to New York anymore, a slice of his paycheck still does.

Can a New Jersey resident file a W-2 in New York?

W-2 reporting for New Jersey Residents working in New York. The New York portion of the W-2: By law, New York employers are required to report in Box 16 of your W-2 the same amount that is reported in Box 1, regardless of what portion of the wages were actually earned in New York.