Work in NJ and live in NYC

[vinnytin]

I will be working in New Jersey and living in NYC. How will I be taxed? will I receive credit for paying NJ taxes and just pay the difference that I owe to NYC?

[Critter-3]

Yes  ... in the TT program complete the non resident  NJ return first so the correct credit will be calculated on the resident NY return  EVEN IF  you will not file the NJ first.  

[rjs]

Yes, you will get credit on your New York tax return for the tax that you pay to New Jersey. It's called the Resident Credit.

You will have to file two state tax returns, a New Jersey nonresident tax return and a New York resident tax return. The New York tax return includes both New York State and New York City taxes. You have to pay New Jersey tax on the income you earn in New Jersey. Since you live in New York, all your income is subject New York tax, no matter where the income is from. You will get the Resident Credit on your New York tax return for part or all of the tax that you pay to New Jersey, but you will still have to pay some New York tax, because the New York tax rates are higher. As Critter-3 said, prepare your New Jersey nonresident tax return first, then your New York resident tax return, to make sure that the credit is calculated correctly.

[vinnytin]

I appreciate both of your replies.

I am making 52k annually on a W4. I am single. How much am I expected to owe? I just want to be prepared during tax time. I need a ballpark idea. Based on my amateur guestimation, it seems like I will be owing $2600 to NY/NYC. Do I sound about right?

[rjs]

Yes, $2,600 sounds about right. I came up with an estimate of $2,500 for New York state and city, making a lot of assumptions.

If you don't want to owe that much when you file your tax return, you could make estimated tax payments to New York during the year.