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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10871
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I was a part year resident in NYC and a NYC employee with

Customer Question

I was a part year resident in NYC and a NYC employee with the Board of Education. I moved out of NYC and NY State to NJ in July 2015 after buying my home in that state. Do I need to file NYC 1127 even if I lived in the City for half the year?
JA: Thanks. Can you give me any more details about your issue?
Customer: What other details? NYC 1127 is a tax imposed on NYC employees who live outside the city. I was a city resident for many years before but I am now a NJ resident. I bought a house in NJ in July 2015 and this is now my principal and only residence.
JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.

Hi - What will matter is that you pay the tax either way. This form calculates the City Waiver liability, which is the amount due as if the filer was a resident of NYC.

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It's called a tax on NYC SOURCE income, as a resident you'd pay the tax either way.

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But from a procedural standpoint, see this from NYC dept of Finance: Any New York City employees who were a nonresident of the City (the five NYC boroughs) during any part of a particular tax year must file an 1127 return. In most cases, if you received an 1127.2 statement from your employer, you would have to file an 1127 return.

Expert:  Lane replied 11 months ago.

Another thing of which you should be aware ... there's a credit for taxes paid to another jurisdiction from New Jersey

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See this from NJ Dept of Treasury:

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"You qualify for the credit if you paid income or wage tax on the same income in the same year to both New Jersey and to another taxing jurisdiction outside New Jersey.

For purposes of this credit, a taxing "jurisdiction" means any state in the United States other than New Jersey, or a political subdivision of another state, such as a city, or the District of Columbia. However, you cannot claim a credit for income tax paid to the Federal Government, Canada, Puerto Rico, or any other foreign country or territory."

Expert:  Lane replied 11 months ago.

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I hope this has helped.

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Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

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That's the only way I'll be credited for the work here.

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Thank you!

Lane

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

Customer: replied 11 months ago.
Ok, I understand the part that states that if I was a nonresident for any part of the year that I must file return 1127 but what about if I did not receive the 1127 statement from employer? I failed to inform the NYC of my new residence in NJ and I think this is probably the reason I was not being taxed for the NYC Source Income.
Expert:  Lane replied 11 months ago.

Right. Regardless of how you report, however, you'll have to pay it because it WAS NYC source income.

Expert:  Lane replied 11 months ago.

I think the answer at this point is to file in a way that's tax compliant with both states' requirements (withholding is just a prepayment, it's the filing of a return that reconciles everything and has you end up paying in the right amounts to each state)

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So, if NJ sees you as a resident, you file as a resident, you the file the 1127 because you are required to, and whatever you DO pay to NYC will generate a credit in NJ

Expert:  Lane replied 11 months ago.

Make sense?

Expert:  Lane replied 11 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks

Lane