Woked remote in New Jerey but taxes paid in Delaware

Assuming you are working remotely for your convenience, you will file a resident return for the state of New Jersey and a nonresident return for Delaware. Since Delaware has a convenience of employer rule* for nonresidents, your income is sourced to the location of your employer. Therefore, even if working remotely in New Jersey for a Delaware employer, your income is still taxed in Delaware.

Your income will also be taxed in your resident state of New Jersey. However, you will receive a credit of taxes paid to Delaware to prevent double taxation. Please complete your Delaware taxes first and then proceed to complete your New Jersey taxes. For more information, click here. 

*Del. Code tit. 30 § 1124 : “Income and deductions having source within this State. -- Items of income, gain, loss and deduction derived from, or connected with, sources within this State are those items attributable to: Compensation, other than pensions, as an employee in the conduct of the business of an employer, for personal services: a. Rendered in this State, or b. Attributable to employment in this State and not required to be performed elsewhere;”

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