NJ Resident, NY Employee - Which do I fill out? IT-2104.1 Non-Resident Exempt vs IT-2104 Withholding

[vbell9]

Hi,

I live in New Jersey but work in New York. I am clear on the fact I will have to file for both states. My employer wants me to fill out either an IT-2104 Withholding or an IT-2104.1 Non-Resident Exempt.

I have tried to look up both forms but am confused. I am a non-resident, so I believe I should be filing IT-2104.1 Non-Resident Exempt, but does this mean I will have to pay a large amount of taxes to NY next year? Should I be filling out the IT-2104 Withholding form so that they are pulling out money from my pay now, to avoid a large pay to NY? Could someone just explain what is the best method as I don't want any issues with filing. Any help or clarity is beyond appreciated. 

Thank you!

[FangxiaL]

Complete Form IT-2104 and give it to your employer.

If you work in NY, your income is NY-source, so you pay income tax to NYS. You can claim a credit for taxes paid to NY on your NJ resident return. You don't want to owe NY too much taxes at the end, because a penalty will be added to the balance due.