New York City Resident -self employed working in New Jersey. Where do I file my taxes?
I am a resident of New York. I am self employed and my entire income is from 2 businesses in which I have consulting contracts and are located and operate within the state of New Jersey. Do I have to file New Jersey and New York state/city taxes?
United States - 3 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
wow. Why choose taxes and death? http://www.youtube.com/watch?v=KiOqHLVxZvA Leave your home, and don't look back. There are many who'll assist you on your way West, I promise. Leave all possessions behind. Your mansion is fully furnished, and has no mortgage, bills or fees. Look to God and live: New York is toast. - - - - - CALIFORNIA DREAMIN May I relate to you, a true story of what happened to me on a Thursday, in 1971? It was in late May, I think. My brother, Ken, called dad Thursday evening. Told him that if I could get up to Salt Lake City by Monday morning at 9:00 AM, I could get hired at a job that just lost a delivery driver at Maxfield's Soft Water. Ken had been there awhile, and Jay, (the boss) treated him like a son. Literally. I was so thrilled to learn this, as I had just escaped Westminster High School! I had no money. My bedroom was in the garage. And I so wanted this new chapter in life, so...I thought hard. Dad was broke. What to do? I thought some more. Right there, in the garage. 14591 Ralph Lane...right off Magnolia Blvd. I remember it as if it were yesterday. Yes, the garage was there, about 24 feet from the house. I was desperate. So I, for the second time in my life...knelt down on my knees, feeling that cool, hard concrete floor. See, I was wearing my bathing cut-offs, having just returned from the beach. (Huntington). My prayer was short, but from the heart. - God knew it. I asked Him to please, please...PLEASE make a way for me to get to Salt Lake City, in time to get hired there, so I could work, like my big brother. I really admired him. The Universe seemed so huge, unemployed. I finished the prayer. As soon as my eyes were opened, I saw a gas can, red plastic...staring right at me! My mind felt a tender truth decend upon it, "Joseph, walk with the can. Don't look back. Just walk. The love of many will get you there." I left in the morning, telling only dad. I cut out the bottom of the gas can, and stuffed a pair of Levi's and a T-shirt 'n sox into it. As soon as I got to the freeway, I walked up the ramp, and a car pulled over within 15 seconds. I am telling you the truth. That was the first of 37 rides, in under 15 hours. Yes, I got the job, keeping it for almost 5 years. Went into the homes and businesses of around 450 fine customers; a few, quite famous. And I mean into the very bowels. Garages, basements...having been given many keys. It made me a man. Those tanks were 85 pounds each. The trust was much heavier. That position taught me how families actually live, love and work. It also revealed the way different businesses operated. Leave New York. Trust in the Lord. There is no life there at all, very soon. O be strong! Yes, you can. LIVE! .
Answer 2 :
New York for your personal income taxes. You would file the business taxes in the state where your primary place of business is. If your business office is in New York, you will file in New York, if your business office is in New Jersey then you file in New Jersey. If your business is required to pay local taxes like sign permits, sales tax, etc you must pay each state accurately. However, federal income and state income tax are based on the address where you reside and/or conduct business. This is usually the address listed on your incorporation papers if you are incorporated or your home address if you are a sole proprietor.
Answer 3 :
Do you receive a 1099 from each of your consulting clients, and then report that income on Schedules C and SE of Form 1040 for your Federal taxes? If so... After you prepare your Federal return, you need to prepare a NJ nonresident return. That will calculate the amount of NJ taxes you need to pay on the income earned in NJ. After that, you need to prepare a NY state/city resident return. That will calculate the amount of NY taxes you need to pay on all your income (earned and unearned), reduced by a credit for the nonresident taxes you pay to NJ. If your consulting arrangement is more complex -- for instance, if you own a corporation doing the consulting in NJ which pays you a salary and/or dividends -- the NJ nonresident portion may be more complex (and beyond the scope of this answer). The NY state/city resident return is still the same -- report your total income, and take a credit for state income taxes paid to NJ.
I am a resident of New York. I am self employed and my entire income is from 2 businesses in which I have consulting contracts and are located and operate within the state of New Jersey. Do I have to file New Jersey and New York state/city taxes?
United States - 3 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
wow. Why choose taxes and death? http://www.youtube.com/watch?v=KiOqHLVxZvA Leave your home, and don't look back. There are many who'll assist you on your way West, I promise. Leave all possessions behind. Your mansion is fully furnished, and has no mortgage, bills or fees. Look to God and live: New York is toast. - - - - - CALIFORNIA DREAMIN May I relate to you, a true story of what happened to me on a Thursday, in 1971? It was in late May, I think. My brother, Ken, called dad Thursday evening. Told him that if I could get up to Salt Lake City by Monday morning at 9:00 AM, I could get hired at a job that just lost a delivery driver at Maxfield's Soft Water. Ken had been there awhile, and Jay, (the boss) treated him like a son. Literally. I was so thrilled to learn this, as I had just escaped Westminster High School! I had no money. My bedroom was in the garage. And I so wanted this new chapter in life, so...I thought hard. Dad was broke. What to do? I thought some more. Right there, in the garage. 14591 Ralph Lane...right off Magnolia Blvd. I remember it as if it were yesterday. Yes, the garage was there, about 24 feet from the house. I was desperate. So I, for the second time in my life...knelt down on my knees, feeling that cool, hard concrete floor. See, I was wearing my bathing cut-offs, having just returned from the beach. (Huntington). My prayer was short, but from the heart. - God knew it. I asked Him to please, please...PLEASE make a way for me to get to Salt Lake City, in time to get hired there, so I could work, like my big brother. I really admired him. The Universe seemed so huge, unemployed. I finished the prayer. As soon as my eyes were opened, I saw a gas can, red plastic...staring right at me! My mind felt a tender truth decend upon it, "Joseph, walk with the can. Don't look back. Just walk. The love of many will get you there." I left in the morning, telling only dad. I cut out the bottom of the gas can, and stuffed a pair of Levi's and a T-shirt 'n sox into it. As soon as I got to the freeway, I walked up the ramp, and a car pulled over within 15 seconds. I am telling you the truth. That was the first of 37 rides, in under 15 hours. Yes, I got the job, keeping it for almost 5 years. Went into the homes and businesses of around 450 fine customers; a few, quite famous. And I mean into the very bowels. Garages, basements...having been given many keys. It made me a man. Those tanks were 85 pounds each. The trust was much heavier. That position taught me how families actually live, love and work. It also revealed the way different businesses operated. Leave New York. Trust in the Lord. There is no life there at all, very soon. O be strong! Yes, you can. LIVE! .
Answer 2 :
New York for your personal income taxes. You would file the business taxes in the state where your primary place of business is. If your business office is in New York, you will file in New York, if your business office is in New Jersey then you file in New Jersey. If your business is required to pay local taxes like sign permits, sales tax, etc you must pay each state accurately. However, federal income and state income tax are based on the address where you reside and/or conduct business. This is usually the address listed on your incorporation papers if you are incorporated or your home address if you are a sole proprietor.
Answer 3 :
Do you receive a 1099 from each of your consulting clients, and then report that income on Schedules C and SE of Form 1040 for your Federal taxes? If so... After you prepare your Federal return, you need to prepare a NJ nonresident return. That will calculate the amount of NJ taxes you need to pay on the income earned in NJ. After that, you need to prepare a NY state/city resident return. That will calculate the amount of NY taxes you need to pay on all your income (earned and unearned), reduced by a credit for the nonresident taxes you pay to NJ. If your consulting arrangement is more complex -- for instance, if you own a corporation doing the consulting in NJ which pays you a salary and/or dividends -- the NJ nonresident portion may be more complex (and beyond the scope of this answer). The NY state/city resident return is still the same -- report your total income, and take a credit for state income taxes paid to NJ.
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