I worked for a contractor remotely in New Jersey. The company they contracted with is in Delaware. The company took out Delaware state tax and not New Jersey state tax. What do I need to do to file my state taxes.
Thank you.
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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.
Thank you I appreciate your help.
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