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Employer withholds only living state tax and wrongly record working state

Forum|Forum|5 years ago
January 8, 2021
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I work in NY and live in NJ. My employer recorded my resident and working state both in NJ. Consequently, only NJ taxes were withheld. W-2 form shows only NJ. How should I file state tax returns? Thanks.

Not A Product Question

Best answer by Hal_Al

You still need to file a NY non-resident return and pay NY income tax on your NY earnings. You report ALL your income on your NJ Resident tax return. But, NJ will give you a credit, or partial credit, for the tax you pay to NY. So, you will be getting a refund from NJ for the over withholding.

Hal_AlAnswer

Employee

You still need to file a NY non-resident return and pay NY income tax on your NY earnings. You report ALL your income on your NJ Resident tax return. But, NJ will give you a credit, or partial credit, for the tax you pay to NY. So, you will be getting a refund from NJ for the over withholding.

N

Nimood2021Author

Will there be any penalty from NY?

Hal_Al

Employee

Yes, if you owe more than $300.

The penalty you will have to pay will equal the federal short-term interest rate plus five and one half percentage points (adjusted quarterly), but not less than 7.5%.