NJ state tax, Not a resident of NJ, didnot work in NJ lived in MA. but employer from NJ
NJ employer with-held NJ state tax. Do I owe any NJ state tax since my state is MA? and I live in MA and work remotely.
Thanks
Your employer should not withhold New Jersey tax if you lived and worked in Massachusetts.
New Jersey says:
You must withhold New Jersey tax from compensation paid to nonresident employees working in New Jersey. If a nonresident employee works inside and outside New Jersey, only the compensation paid for work performed in New Jersey is subject to New Jersey withholding.
See NJ-WT guide.
In order to get a refund of the incorrectly withheld NJ taxes, you'll need to file a non-resident NJ tax return. On that return you should enter the NJ withholdings but allocate zero income to NJ.
Thanks you, yes they are not supposed to withhold NJ tax, I reported to payroll they mentioned that they are not setup to withhold MA state taxes hence withholding NJ (which is ridiculous but there is nothing much I can do as an employee)
@iopstax --
If your employer will not withhold MA taxes for you, then you must make quarterly estimated tax payments to MA. See this for details:
https://www.mass.gov/info-details/dor-estimated-tax-payments