the staff of the Ridgewood blog
Ridgewood NJ, state Senator Steven Oroho (R) , working with state Senator Paul Sarlo (D), from Wood-Ridge are also asking for New Jersey to join a lawsuit filed by New Hampshire with the U.S. Supreme Court over a similar situation with Massachusetts. New Hampshire has no state income tax, but does have commuters who work in Massachusetts and pay taxes there.
Joining New Hampshire are the states of Connecticut, Iowa, Hawaii, Ohio, Arkansas, Indiana, Kentucky, Louisiana, Missouri, Nebraska, Oklahoma, Texas and Utah.
Oroho, a CPA and financial adviser, worked for 18 years in New York City noted that someone living in New Jersey but working in New York and earning about $50,000 a year would pay New York more than $2,800 in income taxes. In New Jersey, that person would pay about $1,300.
At $100,000 salary, the tax bill would drop from $5,600 in New York to $2,750 in New Jersey. That money would go to New Jersey schools, roads and other expenses, Gottheimer said.
The two also sent a letter to the U.S. Treasury and the IRS to provide new federal guidance to residents to make clear that states cannot tax those who neither live nor work within their boundaries. The U.S. tax deadline is May 15 this year.
Oroho said there are about 400,000 New Jersey residents who currently pay New York taxes, amounting to more than $3 billion. In the pandemic, an estimated $1.2 billion has been paid by those who now work from home, rather than make the commute.