Hi Everyone,
I am trying to find my take home pay for the new job. I live in NJ and going to work in NY city. Can someone pls tell me how much taxes I will have for NJ and NY?
My salary will be approx 120K if I decide to work full time and 60K if I work part time. I will appreciate if you can tell me about both scenarios.
Also, about the commuting and parking expenses, someone said we could have pre tax dollars for that. How much it saves you?
I am just trying to decide the take home pay as I am contemplating btwn working full time/part time and also if it worth the hassle if My takle home is not substantial.
Thanks.
Taxes for working in NY and living in NJ
Taxes for working in NY and living in NJ
Your NY employer will deduct NY State tax at standard rate.
http://swz.salary.com/salarywizard/layouthtmls/swzl_statetaxrate_NY.html#taxcalc
You will pay 7.38% as a standard slab for $120K. Adjustments to that can be discussed based upon other income tax factors.
You will not be slammed with Yonkers of NY City tax though.. not yet even though Bloomberg's government was considering something on that lines.
NJ will expect taxes at 6.37% for the same money.
http://swz.salary.com/salarywizard/layouthtmls/swzl_statetaxrate_NJ.html
When you file for NJ taxes, show the NY tax paid and get credit accordingly. Most likely you will get a refund from NY state in most cases as you are taxed by NY state as a non resident.
Considering the fact that it will take you almost 2.5 hours of round trip commute from Edison to NYC, at the minimum, working full time (barring tele commute) is better.
Regarding parking and commute charges, explore 'transit check' options. If you take train like most people, you will probably save $100 from train/parking pre-tax benefits, every month.
http://swz.salary.com/salarywizard/layouthtmls/swzl_statetaxrate_NY.html#taxcalc
You will pay 7.38% as a standard slab for $120K. Adjustments to that can be discussed based upon other income tax factors.
You will not be slammed with Yonkers of NY City tax though.. not yet even though Bloomberg's government was considering something on that lines.
NJ will expect taxes at 6.37% for the same money.
http://swz.salary.com/salarywizard/layouthtmls/swzl_statetaxrate_NJ.html
When you file for NJ taxes, show the NY tax paid and get credit accordingly. Most likely you will get a refund from NY state in most cases as you are taxed by NY state as a non resident.
Considering the fact that it will take you almost 2.5 hours of round trip commute from Edison to NYC, at the minimum, working full time (barring tele commute) is better.
Regarding parking and commute charges, explore 'transit check' options. If you take train like most people, you will probably save $100 from train/parking pre-tax benefits, every month.
Taxes for working in NY and living in NJ
Thanks Tejasvee.
Employer told me about transit check options. when u say, you save 100$, means yr commute is almost free?
Employer told me about transit check options. when u say, you save 100$, means yr commute is almost free?
Taxes for working in NY and living in NJ
ana;51634Thanks Tejasvee.
Employer told me about transit check options. when u say, you save 100$, means yr commute is almost free?[/quote]
No. From where you said you lived, it would cost you over %300 for commute + parking. Since you will pay everything with pre-tax money, I was estimating close to $100 in tax savings.