I work in New Jersey, but live in Connecticut...how will tax filing work? Will I get tax credit?

[eforonda9119]

I started working in New Jersey 4/1/2023, but live full-time in Connecticut. How will tax filing work for me? Do I get a tax credit? 

[xmasbaby0]

You will need to file a non-resident tax return for the state you work in, and after you prepare that return you will prepare a return for the state you live in.   You will get credit from the resident state for the tax paid to the non-resident state.  Just make sure you prepare the NON-resident state return first.

[SteamTrain]

You will file a non-resident tax return for NJ, and a CT resident tax return.  Only your NJ W-2 wages will be taxed by NJ . (unless you own some rental or farm property in NJ that you get NJ income from.....or work there as an independent contractor)

You will do the NJ return first, and then your CT Resident tax return. The CT-resident return will tax all your income from everywhere, including the NJ wages...BUT....CT will allow you to take a credit for whatever tax NJ assessed (which is why the NJ non-resident tax return must be done first).  The CT credit will only be up-to what CT would have charged for that income, so if NJ taxes it at a higher %, then CT may not allow a full credit.