Legal Question in Tax Law in New York

401K State tax

I had to withdraw my 401K savings due to a job loss. I had enough Federal taxes deducted to cover the 10% penalty. The 1099R does not show any state tax deducted. I live 100% of the time in NJ and work 100% of the time in NYC. My entire income is drived from a NYC based comapny. What jurisdiction, NJ or NY, should I pay any due state taxes, if at all? Can NJ and NY both tax me on the same withdrawn money? Thank You.


Asked on 2/06/06, 7:33 am

1 Answer from Attorneys
Norman Nadel Norman Nadel, Esq.

Re: 401K State tax

You pay the tax to New York and then you claim a credit, in the amount of the New York tax, in your New Jersey tax return to reduce the tax you pay to New Jersey

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Answered on 2/06/06, 8:38 am


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