@maglib @kristinelbly --
Arguments aside, there is likely to be a fairly minimal effect on a NJ taxpayer's bottom line based on whether or not he pays NY income tax. That's because income tax rates in the two states are similar, and NJ will allow a credit on its tax return for income taxes paid to NY on income which is also taxed by NJ.
NY's "convenience" rule primarily punishes its neighboring states, by diverting tax revenue away from them and toward New York.
On this topic, it's interesting to note that Arkansas repealed its "convenience" rule in 2021, and also that a bill has been introduced in the Nebraska legislature to repeal its "convenience" rule. If the Nebraska law passes, the number of states with a convenience rule will drop to 4: New York, Pennsylvania, Delaware, and New Jersey (although NJ's convenience rule applies only to residents of NY or DE).
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
