Hi Tim, I live in NJ and my husband still works in the city. You should definitely check with your accountant, but as we chat about this we think that you pay the city tax b/c you work there and then pay only the net tax to the state - so you pay NJ and it the NJ tax is higher than NYS then you get a some refund from NYS. BUT you MUST check with a tax pro - if you need one, I've got a great resource we've been using since our days living in Carroll Gardens Brooklyn all the way to today - gosh, that is about 20 years, 16+ of which have been in NJ.
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