My situation: I live in NJ and work in NYC. My employer (W-2) doesn't withhold NJ taxes. I did one freelance job in NY (received 1099) which the company didn't withhold taxes for, and I understand I will have to pay for that part.
But for some reason, I get a sizable amount of refund from NYS and federal, but the system shows that I owe taxes to NJ. The amount of refund is greater than the taxes owed to NJ so I can use that to pay for NJ. But I don't understand if I forgot to remove NY wages - I thought I would be taxed for the freelance NYC job within the NYS parameter - why do I owe taxes to NJ?
