Income Tax

Hi, if i work in New Jersey, but live in New Hampshire where there is no earned income tax, would I still have to pay state taxes? I own property in both states, but legally live in New Hampshire. thank you!

State tax filing

You will file a non resident NJ return and pay taxes to NJ on the wages earned there.

State tax filing

Thank you Critter-3!

 

State tax filing

Also, would you know if futuristically, I retire completely to NH and begin withdrawing my pre-taxed 401k, that I will not be taxed at all? thanks again.

State tax filing

I retire completely to NH and begin withdrawing my pre-taxed 401k, that I will not be taxed at all?   True statement. 

State tax filing

Thank you!

Hal_Al
Level 15

State tax filing

The general rule is: your report all your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state. You will have to file a non resident NJ state return and pay NJ tax on the income earned there.  Since you live in a state without an income tax (NH), you have no resident state return to file and get no credit for the tax paid to NJ.

 

That said, it's not clear that you are not a NJ resident, for tax purposes.  You say:

"I work in New Jersey, but live in New Hampshire

 I own property in both states, 

I legally live in New Hampshire

 I  may retire completely to NH"

 

It sounds like you have lived and worked in NJ for years and have recently acquired a 2nd home in NH.  You are still a NJ resident if you spend more than 183 days in NJ.  Part of a day counts as a full day. See full rules at: https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/prior_years/git6_1211.pdf

 

State tax filing

Thank you!