I live in NJ but work in NY, should I be paying taxes from my pay to both states on every paycheck? I do not want to be double tax.

[MarilynG1]

@ecannan11  You report all your income to your Resident State of New Jersey.  New Jersey figures the tax on all your income, but  you get credit for the tax you paid to New York. 

File a Non-Resident State Return to New York  and only report income earned/tax paid to NY on this return (prepare this return first).  You should break even with New York if the state withholding was correct on your W-2 for your NY wages. 

Click this link for more info on How to File a Non-Resident State Return. 

[ecannan11]

The IT-203 should only contain my w-2 for NY and nothing else?

[MarilynG1]

@ecannan11 Yes, your Non-Resident State Return to New York, should contain only income earned in NY in the 'New York' column on the IT-203.

There is also a 'Federal' column that shows total income from your Federal Return, but the NY column should only show your New York Income. 

[Edited 4/7/2021 | 10:50 am]

[ecannan11]

Since I already paid taxes to NJ for both 2017 and 2018 and just recently filed the IT-203 and amended 1040's. What happens next?

[BillM223]

"In the majority of these cases do you wind up owing to NY? Example 2017 our gross income broke down to 70% earnings in NJ and 30% in NY. In 2018 it was about 50/50."

It depends on your withholding. I have seen a number of taxpayers in your situation owe to NY because while they had NYS withholding, for whatever reason, they didn't have any NYC withholding.

"Since I already paid taxes to NJ for both 2017 and 2018 and just recently filed the IT-203 and amended 1040's. What happens next?"

So are you saying that when you filed the NJ 2017 and 2018 returns, that you did not file the corresponding NYS returns? Yes, I know the IT-203 is for part-year and nonresident, but which years are you talking about?

[ecannan11]

That's correct. When I filed 2017 and 2018 I did not file the corresponding NY forms completely by accident. I just filed them last month and they now show in the NY site as filed. 

[BillM223]

Well, if I understand you right, you filed the NJ returns way back when with no NYS credit for taxes paid (because you were unaware of this). Now you have filed the NYS returns, so you know the amount of tax to NYS (and NYC), so now you can take this amount as a credit on your 2017 and 2018 NJ returns.

In other words, it looks like you have paid both NYS and NJ state tax, so now you get to amend the NJ returns to take the NYS tax as a credit for NJ taxes.

Make sense?

[ecannan11]

Yes. I guess my last question is will I owe anything to NY? 

[rjs]

---

@ecannan11 wrote:

Yes. I guess my last question is will I owe anything to NY? 

---

Are you asking about 2017 and 2018? You said that you have filed your New York returns for 2017 and 2018, so those returns show whether or not you owe any New York tax.

For any New York returns that you have not prepared yet, if you had New York income you have to pay some New York tax. As BillM223 said above, whether you owe more tax when you file the return (i.e. have a payment due on the return) depends on how much New York tax you had withheld compared to the total amount that you have to pay for the year.

[ecannan11]

I received an assessment bill for 2017 from NY because of the un-filed taxes. I was absolutely shocked. This made me complete the IT-203 immediately and send in. When I was doing so that was when I realized that 2018 wasn't filed either. I completed that as well. I received a very small liability bill for 2018, yet they still have not updated the 2017 bill. It still remains insanely high.

Will they go back and revise the amount owed? Does this take longer? Or will they do nothing? It just seems odd because I did submit it before the 3 year deadline.

[rjs]

I don't know what New York's procedures are for failure to file or delinquent returns. Carefully read the notices that you received and make sure you have done what they say you should do. You should probably communicate with the New York Department of Taxation and Finance to find out where you stand. There may be a phone number or other contact information on the bills or notices that you received. You might need a tax professional to help you straighten this out.

[TomD8]

@ecannan11 --  In an earlier post you said, ".. 2017 our gross income broke down to 70% earnings in NJ and 30% in NY. In 2018 it was about 50/50."  What was the reason for the split income?  Did you move or change jobs?  In which of the two states do you actually live and work? 

[TomD8]

-deleted-

[ecannan11]

We both live in NJ. My wife's entire income was from NJ. I worked 6 months in NJ than started a new job in NY for the other 6 months. 

[TomD8]

If you've now completed your 2017 and 2018 NYS non-resident returns, you know the amount of tax you owed NY for each of those years.  Here is the information on the interest and penalties that you might be assessed by NY:

https://www.tax.ny.gov/pit/file/interest_and_penalties.htm