j_r said:Same here. If you're doing your taxes yourself, there is a glitch in the software that adds the two states' salaries when calculating state taxes. Be sure you're not paying NY or NJ tax on something like twice your AGI. If there's a way to avoid this problem, please let me know! Despite recalculating my W4 each year, I wind up with a substantial NYS and a ridiculous US refund, and owe NJ a small amount.
the_18th_letter said:NJ doesn't recognize my pre-tax retirement fund so they tax me on that income as well. I ALWAYS owe NJ...
Steve said:I think that NJ does allow deductions for 401(k) contributions, but not 529 contributions.
FFB said:Those of us who spend half our waking hours out-of-state pay higher taxes here than those who don't.
spontaneous said:Steve said:I think that NJ does allow deductions for 401(k) contributions, but not 529 contributions. 401(k) yes, but not 403(b) or a 457 plan.
The offset for NJ citizens working in NY on the state's 1040 form is "credit for taxes paid to other jurisdictions". You can include as many as needed.
I have been using Turbo Tax since 1993 and have had no major issues as a NJ citizen working in NY, and recommend using it (Fed + NY + NJ programs) to simplify the filing process.
And yes, I typically get a NY refund, while owing NJ some taxes...mainly because my NY employer takes out NY taxes via payroll, while none come out for NJ. If I want to reduce/avoid paying NJ tax then I have to make an estimate of taxes owed, and send it to Trenton. But the amount is fairly inconsequential and in all the years I've filed I have never had to pay an underpayment penalty to NJ.
Mine is always the other way around -- NJ refund (~$600 this year) and owe in NY (~$300 this year). Wife works in NY, earns about half what I do; I work in NJ. It's a really weird system. And the H&R Block Tax Cut software I use always tries to do the weird double-taxation thing, too -- maybe I'll give TurboTax another try next year.
gerryl said:That is our experience also.
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