Legal Question in Tax Law in New York

HELP! Am I getting deducted too much?

Hello,

I am very confused with this this whole tax deduction law. I live in NJ and work in NY. My salary is $60k annual and and my Taxable Marital Status is Single and Exemptions/Allowances:1.

I get taken away over 1500.00 a month on taxes between Federal Income Tax, S.S. Tax, Medicare Tax and NY State Income Tax. Is this correct? I just want to make sure that later on I don't have to end up owing more money. Usually the more money you make and if single the more you pay and most likely end up having to give back money. I am just really confused. First because I get a lot taken out so instead of being a 60k salary it becomes a 40k salary, second I don't see anywhere in paystub that I get deducted for NJ. Am i suppose to? Although with so much already taken off it better be included somewhere in there. And I don't want to end up having to pay more at the end of year when I believe this is enough. Also, is there a way I can reduce this amount taken off without suffereing consecuences in future? Thankyou!


Asked on 7/30/06, 4:07 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: HELP! Am I getting deducted too much?

Without knowing the exact way you are paid (weekly, bi-weekly, etc.), I do not know if the deductions are accurate. I am presuming that your W-4 shows, single, one exemption. While you live in NJ, you work in NY. Therefore your income is subject to NY taxes (state and local if you work in NYC). When you file your NJ return, you are eligible for a credit for the taxes paid to NY. This might not work out to $ for $, as if you have other income (bank interest, stock dividends, etc.) there might be a difference, due to the way NY calculates its tax and NJ calculates the credit. You might find you are short for NJ and have to pay something. If this is your first year in this situation, I suggest you have your returns prepared by a professional familar with this, like myself. If, as I believe, you might be short for NJ, you can file NJ estimated taxes next year.

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Answered on 7/31/06, 11:15 am


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