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Level 1
posted Jul 12, 2021 12:39:36 PM

NJ vs FL for NY Based Employment

Hi,

I work for a NY based company and currently live in NJ. I understand that WFH doesn't change my NY taxes. However, I have been spending more than 6 months in FL. Is there any advantage to changing my residency to FL since I still have to pay NY taxes, and NJ has a reciprocal agreement with NY?

 

Thanks.

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1 Replies
Alumni
Jul 12, 2021 1:03:39 PM

NY and NJ do not have tax reciprocity.  NJ has reciprocity only with the state of PA.

 

If you are a resident of NJ, all your income is taxable by NJ, regardless of its source.  A resident of NJ (or FL),  is taxed by NY only NY-source income.   See this reference for details:

https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/pit/ny_source_income_nonresident.htm

 

You can't just choose to be a resident of one state or another.  State's have rules regarding residency.  You can read NJ's detailed rules on determining residency here:

https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git6.pdf