Holly W
Employee Tax Expert

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Hello Sharielly,

 

I see that you are a NYC resident and work in NJ.  I'm not sure which state you owed, but in your case, you will be taxed in both states, the state you reside, and the state you work in.  Per New York website:  https://www.tax.ny.gov/pit/file/nonresident-faqs.htm#:~:text=A%20person%20who%20lives%20in,double%20...

If I live in New York but work in another state, am I taxed twice?

A person who lives in one state but works in another may have tax liability in both states, but typically will receive a tax credit in their state of residence to eliminate double taxation of that income.

If you were a full-year or part-year resident of New York State and you had income sourced to and taxed by another state you may claim a nonrefundable resident credit against your New York State tax. This credit is allowable only for the portion of the tax that applies to income sourced to and taxed by the other taxing authority while you were a New York State resident.  

You can opt to have taxes taken for both states.  When filling out your taxes, you always want to do your non resident first to find out your tax liability for that state, so you can claim it as a credit on your Resident state.

New York Withholding form:  https://www.tax.ny.gov/pdf/current_forms/it/it2104_fill_in.pdf 

New Jersey Withholding form:  https://www.state.nj.us/treasury/taxation/pdf/current/njw4.pdf 

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