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Erica
LIF Adult
Member since 5/05 11767 total posts
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tax question - especially those who work/live in another state
DH's office is in NJ - but he only goes in MAYBE 10 times a year.
They are HQ'ed in Georgia.
WHY do we owe NJ income tax? I thought we were supposed to get back from NJ to pay NY? We owe $1000 to NJ and $500 to NY. I just don't understand why any of our money should go to NJ?
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Posted 3/5/10 4:43 PM  |
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MrsPJB2007
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MJ
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Re: tax question - especially those who work/live in another state
How did you file your return? Did they withhold from NJ taxes on his W-2? Did he file a party year/non-resident return for NY or NJ, so that only the percentage of what he earned in each state is taxed by that state?
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| Posted 3/5/10 4:47 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: tax question - especially those who work/live in another state
not sure I understand the last part 
we filed non-resident in NJ/resident NY. they only withhold NJ taxes on his paycheck. My check is all NY.
I used Turbo Tax, so is there something that it is not picking up on?
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| Posted 3/5/10 4:49 PM |
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MrsPJB2007
MBA at your service!
Member since 7/06 12020 total posts
Name:
MJ
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Re: tax question - especially those who work/live in another state
Well it's hard to understand why you are owing on that without seeing the whole picture.
The program should ensure that only HIS salary is showing up as income from NJ as well as the same for NYS -- it should show that only YOUR salary is being taxed by NYS. (If he only was taxed by NJ for withholdings.) It will then tax you on the percentage earned. So if he earned 50K in NJ and you both earned 100K total together, the NJ return should show in a column the amount earned in NJ only...(same with the NYS return) and they will tax only his income earned in NJ and your income earned in NY on that form.
In other words, each should only be taxing you on the percentage that was earned in each state. That might be the reason it's coming out so high....that both returns are treating the joint AGI as money that you BOTH earned in each state.
But like I said, without seeing the whole return, it's just a best guess.
Message edited 3/5/2010 4:56:25 PM.
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| Posted 3/5/10 4:54 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: tax question - especially those who work/live in another state
OK - I get it. I know that TT asks where we made the money - but I will look into that.
Is DH supposed to pay anything to NJ at all? I thought he was supposed to get a return from NJ and we were supposed to pay it to NY?
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| Posted 3/5/10 4:59 PM |
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MrsPJB2007
MBA at your service!
Member since 7/06 12020 total posts
Name:
MJ
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Re: tax question - especially those who work/live in another state
Posted by Erica
OK - I get it. I know that TT asks where we made the money - but I will look into that.
Is DH supposed to pay anything to NJ at all? I thought he was supposed to get a return from NJ and we were supposed to pay it to NY?
Unfortunately it seems his job taxed him as if he was a NJ resident, I'm not sure why they did this, and perhaps he needs to contact payroll to make sure it gets handled asap.
As far as NJ is concerned, his job considered his earnings as if he earned them while working THERE in the state, so in that case, they will tax him on what he earned "there". Which is why you have to file the NJ return and pay taxes on it. He needs to have payroll fix it so that his home state is NY and they have NY take taxes accordingly, since it seems he does earn his income here.
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| Posted 3/5/10 5:02 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: tax question - especially those who work/live in another state
thanks for all your help.
His company will only take NJ out :( But even if he did go every day to work - is he supposed to pay any income tax to NJ? I thought no. I thought he had to pay to NY?
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| Posted 3/5/10 5:09 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: tax question - especially those who work/live in another state
Since he earned wages in NJ, he does have a tax liability. Usually, the ratio of NJ to everywhere is low enough that whatever was paid in is more than sufficient. Either way, you should be getting a credit on your NY return for the tax paid to NJ.
It is entirely possible that his company is just underwithholding and that is why he owes. Can you tell what % they are taking out?
Message edited 3/5/2010 5:20:33 PM.
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| Posted 3/5/10 5:18 PM |
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