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abbalogun
New Member

I am a NY resident, in 2020 got a job in NJ post-covid so always worked remote. Shouldn't my NJ taxes be refunded? Turbo tax shows I owe NJ addtl tax, separate from NY

I did have both NJ and NY taxes withheld. I am confused as to why my entire NJ taxes are not credited
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2 Replies

I am a NY resident, in 2020 got a job in NJ post-covid so always worked remote. Shouldn't my NJ taxes be refunded? Turbo tax shows I owe NJ addtl tax, separate from NY

New Jersey allows employers to determine your work location and your employer has decided you are a New Jersey employee. As a result, you have to pay tax to NJ, as if you commuted to an office in the Garden State every workday.

 

New York will give you a credit for tax paid to NJ.

 

The NJ Division of Taxation says "New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of the COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction." Telecommuter COVID-19 Employer and Employee FAQ.

 

If you want this changed, you'll have to speak with your employer.

AmyC
Employee Tax Expert

I am a NY resident, in 2020 got a job in NJ post-covid so always worked remote. Shouldn't my NJ taxes be refunded? Turbo tax shows I owe NJ addtl tax, separate from NY

In addition, NY credit is for the lower of the 2 states tax on the same income. NJ does not tax the same income as NY so there may be a difference in income being taxed as well. NJ is one of the few states that taxes telecommuters normally.

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