The Low Income Seniors and Disabled of New Jersey Need Your Help
joan_crystal said:
When I was working in NYC, my employer required new hires who lived out of state to sign a document agreeing to pay NY taxes on their full salary regardless of how many days they spent working out of state. This was awhile ago so I don't know if this is their current practice. Under normal circumstances out of state residents pay NY taxes only for the number of days they work in NY.
Which is OK when you do business travel. They can withhold for NY even though you work in NJ for long lengths of time such as 1/2 of the year. But if NJ finds out then you're on the hook. NJ will rightfully demand the for the days you worked in NJ you pay the full tax. They won't care that you paid NY. They care that you pay the full tax amount owed to NJ with no credit for NY taxes paid for the days you worked in NJ.
What you then need is to get the overwithheld NY money back. On NY's IT-203 the NY state amount will be less than the Federal amount based on the days you actually worked in NY. So, if your federal income is 100,000 but you only worked there 40% of the time then you put 40,000 on the NY column. You then calculate your NY tax. On NJ's tax form you apply the NY tax paid as a credit against your NJ tax due..
problem is with NY a day worked at home was not considered a day "out of ny" like a travel day for allocation
ny has indicated( to me) they will clarify their position in october and nj has indicated they want the tax for extended work from home in 2020 covid etc
Floyd said:
Which is OK when you do business travel. They can withhold for NY even though you work in NJ for long lengths of time such as 1/2 of the year. But if NJ finds out then you're on the hook. NJ will rightfully demand the for the days you worked in NJ you pay the full tax. They won't care that you paid NY. They care that you pay the full tax amount owed to NJ with no credit for NY taxes paid for the days you worked in NJ.
What you then need is to get the overwithheld NY money back. On NY's IT-203 the NY state amount will be less than the Federal amount based on the days you actually worked in NY. So, if your federal income is 100,000 but you only worked there 40% of the time then you put 40,000 on the NY column. You then calculate your NY tax. On NJ's tax form you apply the NY tax paid as a credit against your NJ tax due..
Under this agreement, new hires who lived in NJ would pay BOTH the full NY and the full NJ tax. Aim was to encourage employees to live in NY.
How will this fly with seniors and lower income at need residents who rely on the Homestead Benefit and the Senior Freeze?
Most children born in New Jersey would be entitled to a $1,000 state-financed nest egg under a proposal that Gov. Philip D. Murphy is set to announce on Tuesday in a bid to narrow a widening wealth gap.
https://www.nytimes.com/2020/08/25/nyregion/baby-bond-nj.html
Aren't we supposedly in dire financial straits? Have the petitions helped? Or is it time Seniors in your face street demonstrations. In politics quiet and polite doesn't win prizes.
Up to date tax news on the Senior Freeze and Homestead Benefit
HOMESTEAD BENEFIT
Because the COVID-19 pandemic is anticipated to negatively impact the State economy, the New Jersey Department of the Treasury has frozen a portion of spending in order to ensure the State can meet its emergency and statutorily required obligations. Regrettably, this includes freezing funding to support the 2017 Homestead Benefit program.
2017 Homestead Benefit Program Information
https://www.state.nj.us/treasury/taxation/homestead/geninf.shtml
SENIOR FREEZE (PROPERTY TAX REIMBURSEMNT)
The unprecedented impact COVID-19 has had on the economy has forced the state to freeze funding for many worthy programs, including Senior Freeze, and prompted the extension of the budget deadline from June 30 to September 30. Therefore, funding for Senior Freeze reimbursements that typically occur during mid-summer is unavailable at this time.
2019 Senior Freeze (Property Tax Reimbursement) Program Information
https://www.state.nj.us/treasury/taxation/ptr/index.shtml
Floyd said:
https://www.nytimes.com/2020/08/25/nyregion/baby-bond-nj.html
Aren't we supposedly in dire financial straits? Have the petitions helped? Or is it time Seniors in your face street demonstrations. In politics quiet and polite doesn't win prizes.
Up to date tax news on the Senior Freeze and Homestead Benefit
HOMESTEAD BENEFIT
Because the COVID-19 pandemic is anticipated to negatively impact the State economy, the New Jersey Department of the Treasury has frozen a portion of spending in order to ensure the State can meet its emergency and statutorily required obligations. Regrettably, this includes freezing funding to support the 2017 Homestead Benefit program.
2017 Homestead Benefit Program Information
https://www.state.nj.us/treasury/taxation/homestead/geninf.shtml
SENIOR FREEZE (PROPERTY TAX REIMBURSEMNT)
The unprecedented impact COVID-19 has had on the economy has forced the state to freeze funding for many worthy programs, including Senior Freeze, and prompted the extension of the budget deadline from June 30 to September 30. Therefore, funding for Senior Freeze reimbursements that typically occur during mid-summer is unavailable at this time.
2019 Senior Freeze (Property Tax Reimbursement) Program Information
https://www.state.nj.us/treasury/taxation/ptr/index.shtml
More phone calls, letters, emails are needed in support of keeping the funding for the homestead rebate and senior freeze programs. Seniors and he disabled are often at the low income end of the widening income gap. The Governor and his advisors need to realize this. Alternative is that the income gap will be narrowed as a result of low income seniors and disabled individuals moving out of state because they can no longer afford to live here.
Congratulations.
The Homestead Rebate and Senior Freeze are restored with the revised budget which is effective starting Oct 1.
Floyd said:
Congratulations.
The Homestead Rebate and Senior Freeze are restored with the revised budget which is effective starting Oct 1.
Thank you for sharing this information. Thank you to everyone who phoned, wrote, and/or emailed our State officials in support of retaining the funding for these programs.
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When I was working in NYC, my employer required new hires who lived out of state to sign a document agreeing to pay NY taxes on their full salary regardless of how many days they spent working out of state. This was awhile ago so I don't know if this is their current practice. Under normal circumstances out of state residents pay NY taxes only for the number of days they work in NY.