Tax preparation
Live in New Jersey, work in New York: two returns, one tax bill.
New York taxes the wages you earn there. New Jersey taxes all your income but gives you a credit for the state tax. Getting the credit right is where most commuters overpay.
The two returns
- New York nonresident return (IT-203). Reports all your income but taxes only the part earned in New York, mostly your New York wages.
- New Jersey resident return (NJ-1040). Taxes all your income, then gives a credit for the tax paid to New York on the same income (Schedule NJ-COJ).
Do them in that order: the New Jersey credit depends on the finished New York numbers.
Where commuters lose money
- The New Jersey credit claimed for the wrong amount, or not at all.
- Work-from-home days counted as New York days when the employer required them elsewhere, or the reverse.
- New York City tax: it applies to city residents, not commuters. If your W-2 shows NYC tax withheld and you live in New Jersey, that needs a look.
Commuter returns start at $225 plus $100 for the second state. See all prices.
Sources: NY Tax Department, Form IT-203 instructions; NJ Division of Taxation, GIT-3B: credit for taxes paid to other jurisdictions.
Reserve your spot
Tell us a little about your return. We'll confirm the price and your spot by email. Nothing is charged until you approve the price.
Before you send
- Prices are confirmed for your return before we start; the page shows starting prices.
- Nothing is charged until you approve the price.
- Returns are prepared and signed by a paid preparer with a current PTIN. We're not CPAs or attorneys.
Prefer to talk?
Call the desk and we'll take the request by phone.
Questions
Which returns do I file?
A New York nonresident return (Form IT-203) for the wages you earned in New York, and a New Jersey resident return (NJ-1040) for all your income, with a credit for the tax you paid New York.
Do I pay tax twice?
Not on the same income, if the credit is done right. New Jersey's credit for taxes paid to other jurisdictions covers the New Jersey tax on that income, up to the limits the form sets.
What about days I worked from home?
New York generally taxes days you work from home for your own convenience as New York days. Days your employer required you to work outside New York can be excluded. Keep a record of your work locations.
What if New York withheld too much or too little?
Your W-2 shows what each state withheld. The returns settle the difference: a refund from one, sometimes a balance due to the other.
General information, not advice for your situation. We're not CPAs or attorneys.