"Katie" <katiej_1958[at]yahoo.com> wrote:
- quote -

while Katie's summation of your situation above is correct,
one thing to be aware of is that NJ is a gross income state.
If you perform your work activities in NJ (rather than in
NH), you need to talk to your employer about computing your
NJ income and withholding NJ taxes properly. There are
significant differences between what are pre-tax deductions
for Fed and NJ purposes. Box 1 of your W-2 for federal
purposes will be much less than your NJ wages if you have
things like pre-tax health insurance deductions, dependent
care and/or medical savings accounts dedcuctions, etc.

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Sam wrote:

- quote -

Do you work in NH or NJ?

If you commute to work in NH, and your employer has no
business location or activity in NJ, your employer is not
under any obligation to withhold NJ income tax from your
wages. In addition, your employer would properly report you
to NH, not NJ, for unemployment insurance purposes, and your
employment would not be covered by NJ SDI. (It would be
covered by a similar program in NH, if there is one.)

If you work in NJ, then your employer is required to cover
you for UI and DI in NJ, and to withhold NJ income tax from
your wages.

For purposes of preparing your NJ resident individual income
tax return, just use the federal numbers from your W-2. Of
course you will owe tax with your return, since nothing was
withheld, and you will be subject to penalty for
underpayment of estimated taxes.

If you are working in NH, you should make estimated tax
payments to NJ next year to avoid the penalty. If you are
working in NJ, you should talk to your employer about
reporting properly to NJ in 2006.

Katie in San Diego

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Tax gurus, please help me.

My employer is based in NH.
He did not deduct any State tax from my wages for 2005.
In W2 box 15 (employer state) is empty
box 16 (wages and tips) is also empty
I reside in NJ

How do I handle this? How do I calculate state tax for NJ?

1. Do I consider federal wages for calculating NJ tax?
2. Is my W2 incorrect in showing box 15 and 16 empty?
3. Can I ask my employer start deducting NJ taxes although
he is based in NH.
4. What about NJ SDI (State Disability Insurance) and SUI
(State Unemployment Insurance), do I have to pay them
for year 2005? Can I ask my employer to pay them in
future.

Your answers are appreciated.

Sam.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >