Live in one state, physically work in another, company is headquartered in another

[yprudhomme]

I live in one state (NJ), but the physical office where I work is in another state (NY), but the company address that is listed on my W2 is a different state (TX) where the company is headquartered. For what states do I need to file a tax return?

[AmyC]

You live in NJ so you must always file a resident return where you live. Some states allow you to work in the state and have a reciprocal agreement with a neighbor so no tax return is required. NY wants a tax return plus there are city returns in NY and you may have to pay that as well. TX has no tax and nothing is required.

You need to prepare the NY return first. If you worked in NYC or Yonkers, that is part of the NY state return.

Once you have your NY liability, then you can fill out your NJ return. NJ will give you a credit.

You get credit for the lower state tax on the lowest taxable amount.

• Each state calculates taxable income differently. 
• Each state has its own tax rate/ system.
• You get the lowest of both categories as a tax credit.

[yprudhomme]

Thank you! So I still need to file in NY even though I do not live there and the company is not headquartered there?

[AmyC]

NY taxes based on earning the income inside the state. As you go through the program, you will see that you can allocate by the days in NY or percentage earned there or the whole amount if all your money is earned there.