New York and New Jersey Income Tax Reciprocity

Many states have reciprocity agreements with neighboring states to simplify nonresident income tax filing. New York and New Jersey, however, do not have a reciprocity agreement.

If a taxpayer lives in one state but works in the other state, they must file two state income tax returns:

• A resident return for the state in which they reside.
• A nonresident return for the state in which they work;

Note: Always complete the nonresident state return(s) first before completing the resident state return so that the resident return can accurately calculate the credit for taxes paid to the nonresident state(s).