@kdivaa wrote:
How much with the additional cost for filing a second state tax return amount to?
With TurboTax Online it's $50 for an additional state return, including e-filing. With the CD/Download TurboTax software it's $45 for the additional state return. There is no charge for e-filing a New York return, so in your particular case there would be no additional cost for e-filing a second state. (For any other state there would be an additional $25 fee if you e-file the second state.) These are current prices for 2020 tax returns.
@kdivaa wrote:
a friend was sharing with me his situation -
It looks like your friend is sharing the withholding from his paychecks. That has nothing to do with the amounts on the tax return or the actual amounts of tax that he paid for the year. The state income tax withholding is essentially an estimate and could be way off from the total tax for the year on his tax return. He could have a big refund or a big payment due on the tax return. And the SDI, SUI, FLI, and PFL all have maximum amounts for the year. Once you reach the maximum, the withholding stops for the rest of the year. So comparing the deductions on one paycheck tells you nothing.
@kdivaa wrote:
it seems like in some situations, it might be better to live and work in NJ?
That's probably true in most situations, assuming that the salary is the same, since New York income tax rates are higher than New Jersey income tax rates. And in keeping with your original question, this is "purely on a tax perspective," ignoring any other considerations.
