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Financial Planning / Tax Strategies


Subject:  Re: Paying state tax in the wrong state, please Date:  2/9/2001  11:21 AM
Author:  Crosenfield Number:  46035 of 127753

The rules vary from state to state, but in general the tax you pay to one state is deducted from what you pay to another one.
You file in New Jersey, showing tax paid.
If I understand correctly, you live in Atlanta and therefore are subject to Georgia tax; the company you work for is in New Jersey and therefore they deduct New Jersey tax.
Because you are earning income from a New Jersey company, this income may be subject to New Jersey tax. In any case you have to file the non-resident return, and may or may not get the tax back depending on New Jersey law, which I don't know.
You also file your Georgia return showing the amount of tax you paid to New Jersey. Probably that amount will be deductible from your Georgia tax. Since you
live in Georgia, any investment income you have will be subject to Georgia but not New Jersey tax.
Best wishes, Chris
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