Whether it’s New York residents working for a New Jersey employer or vice versa, the income should be sourced to the employer’s jurisdiction during the pandemic, she said. So, according to New Jersey, your employer will continue to withhold New Jersey taxes, at least until the restrictions are removed, she said.

Can I live in NJ and work in New York?

New York (NY) does not have a reciprocal agreement with any state. Therefore your wages would have to be reported on the New Jersey (NJ) and then a credit for taxes paid to another state would be used on the NY return. Your resident state will not tax you twice on the same income.

Do I have to pay NYC taxes if I don’t live in NYC?

Nonresidents of New York City are not liable for New York City personal income tax. The rules regarding New York City domicile are also the same as for New York State domicile.

How is tax if you live in NJ but work in NY?

Since you work in NY, you should be having NY tax withheld from your paycheck, and not NJ tax. Your pay for working in NY is fully taxable by NY. You will owe little or no tax to NJ because you will get a credit on your NJ tax return for a large portion of the tax that you pay to NY.

How does part year resident work on NJ tax return?

The return provides a line for you to show the period of your residency in the state. As a part-year resident, you report only the income you earned or received while you were a New Jersey resident. You must prorate all the credits, exclusions, exemptions, and deductions for which you qualify.

What happens if one spouse is not a resident of New Jersey?

If a joint federal return was filed and one spouse is a resident and the other is not, the resident spouse can file a married filing separate state return. If both spouses agree to file a married filing joint return, all of the joint income will be taxed as if they are both residents.

Do you need to file tax returns in both NY and NJ?

Do You Need to File Tax Returns in New York and New Jersey? 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 Need to Pay Taxes in Both NY and NJ?