how to avoid nj taxes if i live in ny and work in nj?
I live in New York City and I work in New Jersey and I am getting killed in taxes. 39% of my paycheck is taxes: NYC tax, NY State tax, NJ State Tax, and Federal Tax. I know I will get a credit at the end of the year for the NJ taxes, but I need my money now. Is there anyway I can increase deductions so I can get more per paycheck and break even at the end of the year for the state taxes? is there a way figure out the expected credit and how many additional ny deductions would give me this credit amount?
United States - 2 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
If you manage to avoid having NJ taxes withhold, then you will have to pay them later, and will have to pay a large penalty for underwithholding. Instead, reduce the amount of NY tax withheld by approximately the expected amount of the credit. This will reduce the total withheld and will reduce or eliminate the refund that you receive from NY.
Answer 2 :
your tax home is where you work and you indicate that is NJ therefore you should be filing NJ state tax and non resident or part time in NY NY does have some additional taxes just for living in NY but you should be able to separate your NJ income to not be taxed by NY
I live in New York City and I work in New Jersey and I am getting killed in taxes. 39% of my paycheck is taxes: NYC tax, NY State tax, NJ State Tax, and Federal Tax. I know I will get a credit at the end of the year for the NJ taxes, but I need my money now. Is there anyway I can increase deductions so I can get more per paycheck and break even at the end of the year for the state taxes? is there a way figure out the expected credit and how many additional ny deductions would give me this credit amount?
United States - 2 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
If you manage to avoid having NJ taxes withhold, then you will have to pay them later, and will have to pay a large penalty for underwithholding. Instead, reduce the amount of NY tax withheld by approximately the expected amount of the credit. This will reduce the total withheld and will reduce or eliminate the refund that you receive from NY.
Answer 2 :
your tax home is where you work and you indicate that is NJ therefore you should be filing NJ state tax and non resident or part time in NY NY does have some additional taxes just for living in NY but you should be able to separate your NJ income to not be taxed by NY
Read more other entries :
