Dave T Posted November 30, 2009 Report Share Posted November 30, 2009 Help with New York City tax and New Jersey state income tax would be appreciated. Friend's daughter recently moved from upstate New York to Queens, NY. She teaches oustside the City in Rockland County during the week and works in Manhattan on weekends. I understand that due to the fact that she lives within NYC that both jobs are subject to New York State and New York City tax. She is now contemplating a move to New Jersey and commuting to the two jobs. I presume she will be subject to NJ state tax even though she works in NY, is that correct? Also, does NY tax any of this income even though she is no longer a resident? Haven't encountered this before but I'm sure it's quite common for those who live in Conn. or NJ and commute into the City. Again, thanks for the help. Dave T Quote Link to comment Share on other sites More sharing options...
DevM Posted November 30, 2009 Report Share Posted November 30, 2009 She will be subject to NY State Tax and will need to file IT203 (NY Non-resident) return. When she files NJ return she will be able to claim credit for taxes paid to NY on NJ return. Devm Quote Link to comment Share on other sites More sharing options...
Dave T Posted November 30, 2009 Author Report Share Posted November 30, 2009 She will be subject to NY State Tax and will need to file IT203 (NY Non-resident) return. When she files NJ return she will be able to claim credit for taxes paid to NY on NJ return. Devm Thanks for the response on this. Do you know if she would still have to pay New York City tax as well. -Dave Quote Link to comment Share on other sites More sharing options...
Lion EA Posted November 30, 2009 Report Share Posted November 30, 2009 NYC tax for the time she's resident. NYS tax for the time she's working in NYS. So, she may end up with part year returns the year she moves. In NY, the NRPY return covers both nonresident and part year. Someone who's done NJ more recently than I have will need to answer re NJ the year of her move, but I remember having to prepare BOTH a NR and PY NJ returns. Quote Link to comment Share on other sites More sharing options...
bstaxes Posted November 30, 2009 Report Share Posted November 30, 2009 She will need a part year NJ unless she moves on 01/01/10. She would also need to advise her employer of the change of address to get NJ tax taken out of her wages. I would suggest she also keeps the pay stub just before and after the move to be able to break down the amount of wages to each state. Quote Link to comment Share on other sites More sharing options...
Evan S. Golar Posted December 1, 2009 Report Share Posted December 1, 2009 NYC taxes only residents - (except for business taxes where self-employment is involved) - it does not tax nonresidents who are employees. For partial year NYC residency issues - you need to prepare IT360.1 that gets attached to the IT-203 NYS tax return. If she was an employee for both jobs then there is no Metropolitan Transportation Mobility Commuter Tax to be concerned with as that is an employeR's tax. But if she's self employedf in NYS in the MTA area - which includes all 5 boroughs of NYC, Long Island, Rockland, Westchester, Orange, Putnam and Dutchess counties, then she's subject to the MTMCT that is $ 0.34 per $ 100 of net income. Quote Link to comment Share on other sites More sharing options...
Evan S. Golar Posted December 1, 2009 Report Share Posted December 1, 2009 By the way - if you have any problems regarding NYS/NYC/NJ taxes - I am right on the NY/NJ border and have a number of crossover-state clients - so I can help you if needed - not so much with software - as I use UltraTax - but with understanding the reporting issues. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted December 1, 2009 Report Share Posted December 1, 2009 "She would also need to advise her employer of the change of address to get NJ tax taken out of her wages."-BSTAXES is incorrect, you don't want NJ taxes withheld and a NY employer will not normally do this anyway. her wages are taxable in NY and she will only owe NJ if she falls into a higher bracket in NJ or has other income. This is a common error employees make. you pay taxes on wages where you earn the money not where you live. as stated by others, you will have a p/y NJ and a P/y nys and a p/y nyc-this is a pain in the butt to do with atx but manageable. Quote Link to comment Share on other sites More sharing options...
TaxCPANY Posted December 2, 2009 Report Share Posted December 2, 2009 The crucial question is when she 'might have' relocated to NYC -- i.e., NYC presumes tax-residency only upon 183 days presence; so, perhaps, only "recently" may well *not* require your client to file an IT-360.1, but, rather, elide her short-term stay. Resist NYC residency, if your client's facts fit the foregoing test, as I infer. VTY, TaxCPANY P.S. There could be other applicable tests, but, based on what you described, I truly doubt your client has got an NYC residency 'problem' -- in 2009, at least. Thanks for the response on this. Do you know if she would still have to pay New York City tax as well. -Dave Quote Link to comment Share on other sites More sharing options...
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