What is the best company in NJ to work for?

I reside and work in New York City only but the company is in New Jersey, and the company deducts New Jersey taxes only, how does affect me at the end of the year when I declare taxes, or if lost my job where do I have to apply for unemployment NJ or NY?

• Answer:

  http://law.onecle.com/new-jersey/54a-new-jersey-gross-income-tax-act/5-8.html states that income received by a nonresident "in connection with a trade, profession, occupation carried on in this State or for the rendition of personal services performed in this State" is subject to New Jersey state tax. You state that you performed no personal services in the state of New Jersey, but it's not entirely clear based on the facts whether the first part of the section is true in your case. Normally if you provide no personal services in the state your income is sourced to the state in which you perform the services, but some states are taking an expansive view of what it means to have income "connected to a trade or business" in the state. You should have a conversation with your company's HR or financial department, asking them to state in writing why they are withholding NJ state income taxes from your wages when you are performing no personal services in the state of New Jersey. If the company has determined that you are subject to New Jersey state tax because your income is being received "in connection with a trade, profession occupation carried on" in NJ, even though you are performing no services in NJ, get them to state the reasons for that determination in writing. You need it in writing for your own protection - the company should understand that you're trying to make sure that you do have a NJ tax obligation. (And it does happen that the company itself doesn't understand its own withholding requirements.) Before you file I strongly suggest that you discuss this with a competent tax professional in New York. Most have experience dealing with precisely this situation. In either case you are going to have to file as a New Jersey non-resident and as a New York resident. If it turns out that you do owe the state of New Jersey, you will be able to take a credit on the New York return for the net taxes you owe New Jersey. If it turns out that you do not owe New Jersey, you still have to file the return to get a refund on the taxes withheld.