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NJ resident, working in NYS, no NJ tax withholding, only NYS tax withheld?

Hi guys,

 

I am a full time NJ resident, and work in NYS (not NYC). All of my earned income is in NYS. Currently, my paystub shows no withholding for NYS, but my NJ tax is withheld. 

 

I understand this is incorrect and it should only have my NY tax withheld, with no withholding for NJ. My employer gave me both IT-2104 (NY Withholding Allowance Certificate) and NJ-W4 to fill out to correct it. I don't know if these are the correct forms: 

 

- NY IT-2104 is the standard withholding form

- NY IT-2104.1 is for non-resident withholding

- NJ-W4 is if I want NJ withholding and I don't qualify for the EXEMPT as defined in the rules

 

Do I really need to file NJ-W4 if I don't want my NJ tax withheld? 

Do I file NY IT-2401 or NY IT-2401.1 as I am a non-resident in NY?

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2 Replies
rjs
Level 15
Level 15

NJ resident, working in NYS, no NJ tax withholding, only NYS tax withheld?

The withholding forms go to your employer, not to the state. All you have to be concerned about is how the employer is going to interpret the forms. Ask the payroll department how to fill out the forms or other documents to accomplish what you want. After you give them the new forms, check the withholding on your next paycheck to make sure it's correct.

 

TomD8
Level 15

NJ resident, working in NYS, no NJ tax withholding, only NYS tax withheld?

If your work will be 100% performed within New York State, then file NY Form IT-2104 with your employer.  Form 2104.1 is for non-resident employees who will be performing some of their work outside the State of New York. 

 

File a NJ W4 if you want your employer to withhold both NY and NJ taxes.  If your job will be your only source of income, then it may not be necessary for you to have NJ taxes withheld.  That's because you will be able to claim a credit on your NJ tax return for the taxes you pay to NY on the income taxed by both states.  The credit may be sufficient to cover your taxes due to NJ, since NY's tax rates run a bit higher than those of NJ.

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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