KarenL4
Employee Tax Expert

Self employed

Hi,

Great instincts and great question!

 

You have to pay New Jersey tax on the income that you earn while you are working in New Jersey. It doesn't matter where your employer is located or where your permanent home is. You have to file a New Jersey nonresident tax return and pay NJ tax on the income that you earned while you worked in NJ.


It also doesn't matter that your paycheck does not identify it as NJ income, although it should. Ideally your employer would withhold NJ tax while you are working in NJ. (Obviously you have to tell them where you are working.) If they do not withhold NJ tax, you should make NJ estimated tax payments to avoid owing a large amount when you file your tax return, plus penalties for not having paid during the year.


There is no double taxation, since Florida has no personal income tax. You pay tax only to New Jersey. And of course, since there is no Florida tax return, you do not get credit from Florida for the tax that you pay to New Jersey.

 

This information from NJ provides more detail.

 

Hope this helps!

 

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Best,

Karen

 

 

 

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