Please Help Me...tax Question...

[ThreeMusketeers]

We are a married couple with one daughter.

We moved from NY to NJ in JUNE.

My husband now works in NJ. I still work in NY.

How do we file taxes? If he works and lives in NJ and I live in NJ an work in NY?

Are the tax implications awful???


Any advice? Please help!!

 

[mirmartinez]

Sorry, I am confused as to what your asking.

Are you asking what state you should file with?

 

[ThreeMusketeers]

I know we will file non resident tax return for NYS.

But I am asking if we will end up being "double taxed from both NY and NJ b/c I am living in NJ an dworking in NY.

Also, asking if my hubby and I have to file seperate b/c he is living and working both in NJ. while I am living in NJ but working in NY?

 

[Mrs.Toad]

It's been many years since I did this, but if I recall correctly, for the year of the move, you would file tax returns with both states as a "Part-year resident". The returns are usually called "Non-resident/part-year resident", and check the box for part-year. There are usually two income columns on these returns, one for total (Federal) income and one for the amount earned in that state.

A percentage is computed based on how much income you earned within the state versus everywhere, and tax is paid only on that percentage. So, if your jobs pay the same, you'd pay NY tax on roughly 75% of your income and NJ tax on 25%.

Then, next year, your NJ return will be a regular, resident return. You'll still file a NY non-resident return, paying NY tax on the income that was earned in NY. You can take a credit for that tax paid on your NJ return as a "credit for taxes paid to another jurisdiction".

So you have to jump through some hoops, but in the end, you won't be paying tax twice on the same income. You can do it all on a joint return, as well.

Hope this helps.

 

[jsmith]

Well this is how it works for us-We live in colorado-my husband is in the wyoming national guard-currently on active duty and living in cheyenne-but our home of record is in colorado so he votes,pays taxes, licenses cars and so on in colorado-we have colorado tax with held from his guard pay and file as full year colorado residents-the ultimate result of this is that we get a big refund from the state since military income earned in another state is not taxable in colorado-but i didnt learn that for like the first 15 years we did it and i paid taxes i didnt owe. Now i have someone trained by the military to do taxes for military personell do my returns-much less confusing.

 

[manning]

This time around It may be advisable to talk to a professional tax expert.

I kind of have the same issue. I live in Illinois and won 4 grand at the casino in Michigan. First time ever. Turns out Illinois and Michigan has a reciprosity agreement. I should not have had Michigan taxes withheld and just file with my home state. They would have collected from me and passed it on to Michigan. Now I have to file with Michigan to get that money back, no choice the only way I can do it.

If you don't want to hire someone, do what I did. I called both states and found what I have to do. Now is the time to do it before filing season starts.

 

[Mrs.Toad]

If you don't want to hire someone, do what I did. I called both states and found what I have to do. Now is the time to do it before filing season starts.

This is good advice. It will always vary by state, so the best place for info is from the state itself, or a professional. For example, Wyoming and Texas don't have a personal income tax, so it will be very different for people with income from those states, as opposed to NY/NJ.

 

[vt_disney_fan]

It's not that hard - even a basic program such as Turbo Tax can walk you through it. While I'm not familiar with the particular tax laws of either NY or NJ, I have this issue when I help my BIL and SIL file their taxes with NC/VA residence and work issues.

There are usually reciprocal agreements between neighboring states for this sort of thing. And Mrs. Toad is right, you would file using partial year resident status, and essentially get credits in one state for tax paid in another.

It really sounds more difficult than it is, in practice.

 

[Cheshire Figment]

I would strongly suggest that for this year you go to a tax professional.

Your Federal return itself should not be a problem. However, if the move was related to your husband's change of employment location some of the costs of the move may be deductible.

You will need Part year returns for both NJ and NY. In addition, you may need a NYS/NYC Non-Resident return for the part of the year you lived in NJ.

Once this year's tax return is done, you will be able to generally follow what was done for subsequent years, with Federal, NJ Resident and NYS/NYC Non-Resident (until you stop working in NYC).

It is worth the investment to get everything right (and also be asked the right questions).

Mike (CPA Retired)