naveed.khan[at]gmail.com wrote:

- quote -

I know this is "old and cold," but I was out of the country
for the last two weeks of the filing season and I'm just now
catching up!

A 401(k) plan is the only type of retirement plan for which
NJ allows a deduction (N.J. Rev. Stat. =A7 54A:6-21; N.J.
Admin. Code =A7 18:35-2.5(a)). Your NJ wages should not
include the amount you contributed to your 401(k). I wonder
if you mean that your NJ wages don't include A DEDUCTION for
the amount you contributed to your 401(k), and that is what
is kicking your NJ income above your NY income. If that is
the case, then I believe the W-2 is wrong and you should ask
your employer to correct it and file an amended NJ return to
claim a refund (assuming you have already filed it and paid
the tax).

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. > << ================================================== ===== >

<naveed.khan[at]gmail.com> wrote:

- quote -

I'm not sure that I completely understand your question
here. I prepare many 1040's for people who live in NJ & work
in NY.

NJ does tax your global income, if you are a full year
resident. Then a credit for taxes paid to other states is
calculated on the double taxed income. Depending on the
differences in tax rates between states, you may not get a
credit for the entire tax paid to the non resident state.

This area is often one where I find computer software errors
in calculations. Many programs do not do the more complex
situations correctly.


--
<<< Benjamin Yazersky CPA [NJ & NY] > > ---> real address on hobokenx or hobokeni <---

<< ================================================== ===== > << 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. > << ================================================== ===== >

<naveed.khan[at]gmail.com> wrote:

- quote -

That's wrong. NJ taxes that income, but gives you a credit
for the amount of tax you pay NY for that income, up to the
amount NJ would tax you for that income. Since NY's rates
are higher, the effect is you don't pay NJ tax on that
income.

- quote -

On the money you earn in NY.

- quote -

So you had some income that wasn't earned in NY, right? NJ
collects tax on that income.

Seth

<< ================================================== ===== > << 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. > << ================================================== ===== >

I have a tax related question and i hope somebody could
answer that. I live in NJ but work in NY. I do understand
that NJ can not tax the income i earned from NY and
basically i should not have to pay any tax to NJ. But the
problem is that my taxable NJ income is more that NY which
is resulting in a balance of about 200$ payable to NJ. I
noticed that NJ taxable income does not include my 401K. Is
this ok ? Any thing i can do about it ?

thanks

<< ================================================== ===== > << 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. > << ================================================== ===== >