Hi,
I am a full-time NY Resident working for a company based in NJ. I'm a full-time remote worked out of NY since 2021. For the past few years I have only paid NY State tax, and only filed NY State taxes.
Starting 9/9/2023 NJ started to collect NJ Sales Taxes based on the income made from this date onwards. The total tax amount between NY and NJ per pay statement didn't change much (NY basically cut cut in half), but I'm a bit at a loss here:
- Why did NJ suddenly start taxing me? Looks like this law is impacting me? [NJ} P.L.2023, c.125 was enacted on July 21, 2023 and establishes a “convenience of the employer test” (convenience rule) for nonresident income sourcing. See: https://www.nj.gov/treasury/taxation/conveniencerule.shtml
- As far as taxes are concerned from my research I believe I need to:
- Prepare Federal first
- Then prepare NJ (I'm a NY Resident)
- NY last
Do I need to do anything else manually? I guess that NY will give me a credit for taxes paid to NJ to protect from dual taxation, or will it be the other way around? This is so confusing!
Thank you.
