Filling out NJ-W4 for work

[vanna8788]

I work in NY but live in NJ

[Vanessa A]

What is your question?

[rjs]

If you work in New York you should not be filling out an NJ-W4. You should be filling out a New York Form IT-2104. Your New York employer should be withholding New York tax, not New Jersey tax. When you file your tax return at the end of the year, you will have to pay New York tax on your New York income. Since you live in New Jersey, your New York income is also taxable by New Jersey. But you will get a credit on your New Jersey tax return for the tax that you pay to New York. Since New York tax rates are higher, the bottom line is that you will end up paying essentially all your tax to New York, and very little if any tax to New Jersey.

[vanna8788]

Thank you. I am also filling that form out.  My job says I have to fill out both, please see what they said below the below. We also have been remote most of 2020 into 2022. 

Select your resident state to complete your state withholding form.  If your work state is different than your resident state, please repeat the process and select your work state from the drop down menu.  If your primary work location is not in the state of New York, complete a New York IT-2104.1 – Non Resident Exempt form, even if you plan to work 0% of the time in New York. Please select New York State and the Non-Resident Exempt form to complete

[vanna8788]

[vanna8788]

I posted below what the forms they are making us fill out look like 

[DanielV01]

As @rjs stated above, for your NJ form, click the "exempt" box.  No NJ tax will be withheld, and it is very likely that you will not have to pay any New Jersey tax on your tax return.  However, New Jersey reporting requirements mandate that employers report all of the income to New Jersey so that the final determination can be made on the NJ state tax return.

@vanna8788