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Yes, you will file a NJ nonresident return, even if the tax was withheld in error. This is because it's the only way to get back mistaken withholdings. If he only worked in NY, he would allocate the amount of income earned in NJ as zero, unless he telecommutes.
If he telecommutes, that is, works from home for a NJ employer, NJ does tax the income. In this case you file a NJ nonresident return and a NY resident return. However, NY provides a credit for the taxes you pay to NJ on this income (end result is pretty much the same between the two). Here's a website that explains this tax treatment about telecommuting: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html
Yes, you will file a NJ nonresident return, even if the tax was withheld in error. This is because it's the only way to get back mistaken withholdings. If he only worked in NY, he would allocate the amount of income earned in NJ as zero, unless he telecommutes.
If he telecommutes, that is, works from home for a NJ employer, NJ does tax the income. In this case you file a NJ nonresident return and a NY resident return. However, NY provides a credit for the taxes you pay to NJ on this income (end result is pretty much the same between the two). Here's a website that explains this tax treatment about telecommuting: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html
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