zero_cool_protege t1_is2tw28 wrote on October 12, 2022 at 10:01 PM

Reply to comment by JerseyCityGeordie in Tax savings of moving to JC from NYC by InternetMedium4325

You have to file both, not pay both:
"In short, you’ll have to file your taxes in both states if you live in NJ and work in NY. Like most US States, both New York and New Jersey require that you pay State income taxes. Some states have reciprocal tax agreements, allowing you only to pay taxes in your home state. New Jersey has a reciprocal tax agreement with Pennsylvania, but they do not have one with New York. Because of this, since you live in a different state from the one that you work in, you need to make sure you file a tax return in both.
In New York, you will need to file a non-resident return (IT-203). While in New Jersey, you will need to file as a resident (NJ-1040). But if you’re filing two returns, that begs the question: do you pay double taxes if you live in NJ and work in NY?
Great news for you, no! You do not have to pay double taxes. However, if you want to avoid paying more than you owe, it is vital that you file your New York return first so that when you file in New Jersey, you will receive a tax credit for any taxes you already paid. This will prevent you from being taxed on the same income by both States."

Source

Vertigo963 t1_is3ccnq wrote on October 13, 2022 at 12:17 AM

You're correct that a worker residing in NJ but working in NY State needs to file both NJ and NY State income tax returns. But the person you are responding to stated that such a worker needs to file and pay NY City income taxes, which is incorrect. In addition, you're not entirely correct when you say that this worker won't have to "pay both" - it's common that such a worker may owe money to both states, either because the worker has some NJ-only income (e.g., checking account interest) or because the NJ tax credit and the tax systems of the two states don't line up exactly right.