What is the best company in NJ to work for?

Where is my income taxable if the company is in ny but I work partly in NJ?

• Answer:

  The general rule is that you income is taxable in BOTH the state where you work and the state where you live. Some states have reciprocal agreements, but NY and NJ do not. But NY has its dreaded telecommuter tax. If your employer requires you to work in NJ, the income you earned in NJ would not be taxable in NY (unless you live in NY). If your employer gave you the option of where to work, for example if they let you telecommute from your home in NJ, NY still considers the income to be taxable by NY. NJ would consider any income earned while working in NJ to be taxable in NJ and all income earned by a NJ resident, no matter where, to be taxable in NJ. Yes, it is possible for the same income to be taxable in two different states. If you live in NY or NJ, the state where you live will give you some credit for the taxes paid to another state to offset some of the double taxation. But if you live in a third state, you could be really screwed if you have income taxable by both NY and NJ, since your state would not let the credit they give you exceed the amount charged by that state.