The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: New York vs New Jersey tax Date:  4/13/2001  5:04 PM
Author:  JABoa Number:  50215 of 127753

Hi Bob, given that this is April 13, I sure hope your question is hypothetical and not urgent.

This paying of taxes to 2 states happens a lot. Near me in Boston, a lot of people work in Massachusetts but live in New Hampshire. As it happens, NH has no income tax but MA does, and these people pay it. It goes on a Non-Resident form.

In states where both have a tax, you file a Non-Resident return where you do not live, and a Resident return where you do. You get a credit against the Non-Resident tax paid, on your Resident return. Just how this is calculated varies from state to state. But it is certain that you will never pay less tax by living in state A and working in State B, then if you both worked and lived in State A.

NY and NJ are close, and I think the NYC tax is being phased out somehow. I have not got the numbers in front of me, but I betcha the difference is half a percent tops.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us