Assuming you are working remotely for your convenience, you will file a resident return for the state of New Jersey and a nonresident return for Delaware. Since Delaware has a convenience of employer rule* for nonresidents, your income is sourced to the location of your employer. Therefore, even if working remotely in New Jersey for a Delaware employer, your income is still taxed in Delaware.
Your income will also be taxed in your resident state of New Jersey. However, you will receive a credit of taxes paid to Delaware to prevent double taxation. Please complete your Delaware taxes first and then proceed to complete your New Jersey taxes. For more information, click here.
*Del. Code tit. 30 § 1124 : “Income and deductions having source within this State. -- Items of incom...
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
