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Underpayment

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T

thongyoi

Guest
I lived in New Jersey, but I worked in New York. I received the Statement of Account Underpayment from NJ said that I need to pay NJ because I didn't pay to NY. The thing is after I look over my tax, I found out that the mistake was on NY column. (Forgot to mention that I hired the tax preparer to the tax on that year) On that year I got refund back from NY, but too much. How do I collect this mistake? Should I amended the tax to NY and submitted the document to NJ, so I wouldn't have to pay NJ? When I called the person who audited my tax, he said to pay to NJ because it will be cheaper. My main concern is that if I go ahead pay NJ. What will happen to NY? If NY try to collect me later on, can I tell NY that I already pay to NJ? How is this thing work?
 


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loku

Guest
If you are talking about Income Tax, then it works this way: If you earn money in NJ, you have to pay NJ Income Tax on it. If you live in NY, you have to pay Income Tax on everything you earn everywhere, but you get a credit against your NY tax for the tax you pay another state.

If this problem was caused by the tax preparer, the tax preparer should fix it for you.
 
T

thongyoi

Guest
Underpayment???

I couldn't find my tax preparer. He wouldn't answer the phone, but I will keep tried. Anyway, I lived in New Jersey, but I earned money from New York.
 
L

loku

Guest
Sorry about the msitake; however, the same principle applies: If you earn money in NY, you have to pay NY Income Tax on it. If you live in NJ, you have to pay Income Tax on everything you earn everywhere, but you get a credit against your NJ tax for the tax you pay another state. The difference is that NY has a higher tax rate, so your credit will be for the amount of NJ tax you have to pay on the income, which will be somewhat less than the tax you have to pay NY.
 

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