Work in NJ live in NYC. Have it set up so that my employer is taking NJ State Tax, NJ SUI tax out of my paycheck. Will i get all of that refunded when I file next year?

[alichaudhry108]

Like they take around $200 or so out of my paycheck for NJ tax stuff. My guess is, will I be getting a 200*24 (paid semimonthly) tax credit next year? Like $4800 total, some to offset whatever taxes I owe to NY and the rest back as a refund? Thanks !

[TomD8]

The income you earn by working in NJ is fully taxable by NJ, as well as by your home state of NY.

You will not get a refund from NJ unless you have excess NJ withholdings.  Instead, you will be able to claim a credit on your NY return for the taxes paid to NJ.  The credit will reduce your NY taxes accordingly.  Thus you will not be double-taxed.

I'm not sure about the SUI, but I assume that you must pay it if you're eligible for NJ Unemployment Compensation.

[alichaudhry108]

I understand, I guess just to dumb it down for me: when I file my federal returns; say at the end I owed $300 in taxes. Will I then get $4300 as a refund since I’m using that $4800 as a tax credit?

[TomD8]

My answer refers only to your state tax returns.  If you itemize deductions on your federal return, you may be able to deduct your net state income tax paid, subject to IRS limits.  This IRS limits the deduction for state and local taxes to $10,000.

[NCperson]

@alichaudhry108 - federal taxes (and their related withholdings) are a totally separate matter from states taxes for NJ and NY and any STATE withholdings on your payment. 

if you have $4800 withheld from your paycheck for NJ STATE taxes, you will need to calculate BOTH NJ and NY state taxes to determine how much you owe each state.  THAT will determine how much of the $4800, if any you get refunded.