| Most of the time, people live in one state and work in | | | | Since he is living in New Jersey he would file his taxes |
| the state. As a result, they need to only pay taxes to | | | | as a resident and since he works, he would file his |
| the one state without concerning themselves about | | | | New York taxes as non-resident. This is how the |
| any out of state taxes. However, this is not always | | | | taxes would normally be set up in this situation. |
| the case. Let us take a look at my friend Martin who | | | | This can get a bit messy at times. This often does |
| has had a recent change in how he did his state taxes. | | | | happen for many people who have such commutes |
| Last year, Martin was living in New Jersey and working | | | | for work. It is common to see it in the tri-state area of |
| in New Jersey. Six months ago, his business moved to | | | | New York, New Jersey and Connecticut. In these |
| Manhattan and now he works in Manhattan but still | | | | cases, don't be shy, ask the company that you work |
| lives at home in New Jersey? So now question now | | | | for; normally they will have the information that you |
| arises regarding his taxes: does he need to be filing | | | | would need to know. This way it will become much |
| state taxes for two states or just one? In this case | | | | more efficient and simpler for you. |
| there will be two filings, but he will not be overtaxed. | | | | |