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klt58
New Member

My husband's employer is headquartered in New Jersey. We live in New York. His W2 shows tax withheld for both NJ and NY. Why?

My husband has only ever worked in New York. His W2 shows tax withheld for both NJ and NY. Why? And do we need to file a non-resident NJ tax Return?
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DanielV01
Expert Alumni

My husband's employer is headquartered in New Jersey. We live in New York. His W2 shows tax withheld for both NJ and NY. Why?

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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DanielV01
Expert Alumni

My husband's employer is headquartered in New Jersey. We live in New York. His W2 shows tax withheld for both NJ and NY. Why?

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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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