new jersey tax and new york tax

[liuhuangyu]

I worked in NY for 3 months during mid of 2019 but lived in NJ. I then stopped working for rest of the 2019 and moved to live in NY. So by the end of the 2019 my living address was in NY. In this case, when i filed the 2019 tax, do i need to file for both NJ and NY? or just NY only? Many thanks.

[DanielV01]

If you both live and work in New York, you will not need to file a New Jersey return.  You will only file the New York resident return (Form IT-201 instead of IT-203).

[liuhuangyu]

For three months during 2019 I worked in NY but lived in NJ. For rest of that year I lived in NY with no work. Do i need to file tax for both NY and NJ? Thanks.

[BillM223]

Are you asking for tax year 2019 (as opposed to the current tax year, 2020)?

The general rule is that you file a return in the state where you live and a return in any state(s) where you physically work.

If you are indeed asking about tax year 2019, then you would file part-year returns for both states.

You will find that your New York income will be taxed in New York first, then New Jersey will take taxes paid to New York as a credit to New Jersey.

[liuhuangyu]

Thank you, yes, i indeed asked about 2019. For some reasons, we didn't file 2019 tax till now. It was first time we do this and after playing around it turns NY pays all income tax back to me but i owe several hundred dollars to NJ...and i suppose they will charge me fines?! Do they take explanations why it's been delayed for a year?

[BillM223 · Accepted solution]

There are several possibilities. The first if that New Jersey and New York may levy a penalty on you for failure to file. If you indeed get a refund from New York, there shouldn't be any interest to pay to NYS, but New Jersey may charge you interest from the original due date of the return.

What you should do is file both returns, because filing and paying cuts off any running interest. Then let New York and New Jersey take the initiative to send you letters requesting penalties and interest - after the last two years, I can't guarantee that they will bother (or course, I can't guarantee that they won't either).

When someone sends you such a letter, you can ask for an "abatement" (waiver) of either penalties or interest because of some special circumstance. That's up to you. Good luck.