New Jersey Nonresident and New York Resident

If you live in New York, but you are employed in New Jersey, you’ll file a New York resident return, which taxes ALL your income. You’ll also have to file a nonresident return for New Jersey, paying taxes on the income you earned in New Jersey.

While it may seem like you are paying taxes on the same income twice, you’re given the ability to claim a credit on New York schedule IT-112-R for the taxes paid to New Jersey.