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Level 2
posted Jan 27, 2023 5:48:22 PM

NJ state tax, Not a resident of NJ, didnot work in NJ lived in MA. but employer from NJ

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

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1 Best answer
Level 15
Jan 28, 2023 7:24:58 AM

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.

5 Replies
Expert Alumni
Jan 27, 2023 6:30:00 PM

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.

Level 15
Jan 28, 2023 7:24:58 AM

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.

Level 2
Jan 29, 2023 11:12:33 AM

Thank you, this is what I am looking for

Level 2
Jan 29, 2023 11:14:08 AM

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)

Level 15
Jan 30, 2023 8:15:39 AM

@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