Confused: State Tax

[CaNj]

I live in California 100% but I found a job remoting to NJ as a full time job plus benefits.  Do I need to file a California State Tax Return and a NJ State Tax Return?  I thought where one lives is where you file and not where you are remoting to.  

Company in NJ isn't withholding because they are not registered in California.  Would I need a NJ and CA withholding on my income, and so NJ and CA tax returns?

I am very confused and wondering if I should look for a job in CA.  Look forward to your advice.  

CaNj

[DawnC]

Your resident state taxes ALL of your income.   So California will tax you on all of your income.   If you worked in NJ, you would need to file a nonresident return in NJ (as well as a resident CA return) - but NJ will only tax you on income you earned while physically present in NJ.    CA will give you a credit for any tax you pay to NJ so that you are not double taxed.   I am assuming you did the work in NJ.   

But if you did the work for the NJ from your home in CA - you do not file the NJ return.    You only need to file the nonresident return if you went to NJ and did the work there.    If you were working from your CA home, that is CA income and not taxable by NJ.    But if you have NJ withholding on there, you will still have to file the nonresident return to get those taxes back - you will owe them to CA.   

Do I need to file a nonresident return for an out-of-state employer?

Taxes and Moving to a New State

[CaNj]

Dawn C @Employee Tax Expert:

I am working remotely from California to NJ.  I haven't step out of California.    

Because of the withholdings in NJ, sounds like I will need to file a state tax return in California and as a non-resident in NJ.  

What about earnings reported in NJ?  If I made let say $50,000 all in California working remotely in California for a NJ company but because of the NJ withholding, I would need to report all $50,000 as an income to NJ state tax division?

I wished you were in California, I would like to buy you a large cup of coffee!

Thank you so much Dawn C!  

CaNj

[ErnieS0]

New Jersey taxes income based on where the service or employment is performed so as Tax Expert @DawnC said, you are not liable for New Jersey tax and should file a NJ nonresident return to get a refund.

You must enclose a signed statement  with your New Jersey nonresident returns indicating you are a resident of California, along with a copy of your CA tax return.

To stop withholding complete an Employee's Certificate of Nonresidence in New Jersey (Form NJ-165)  and give it to your employer.

[CaNj]

ErnieS0:  I knew that I should had a tax preparation expert to help me.  My wife is reminding me the entire week.  Both you and Dawn C are improving my chances of looking better.  Thank you both for your invaluable help! 

One request, do you happen to know if California has similar form to the one from Pennsylvania stating non-residency in NJ?  Can I create my own?

Thank you,

CaNj 

[BillM223]

"do you happen to know if California has similar form to the one from Pennsylvania stating non-residency in NJ?"

What form is this? Why would California have a form stating nonresidency in NJ? Or am I taking you too literally?

Or are you planning to move out of CA?

[CaNj]

BillM223:  

I rushed through and didn't clarify.  If I am filing non-residency in NJ, I was curious whether CA would require a statement that I am a 100% resident of CA and not NJ.   

Thank you,

CaNj 

[ErnieS0]

No. You will not need to file a statement with California because you are filing a California resident return and reporting all your income to CA.

And you will not be claiming a tax credit for  NJ tax because you a filing a return to get back all your NJ withholding so you have no double taxed income to report.