I will be working from home making approximately $90,000 per year. My husband will be working in NYC making approximately $70,000 per year with a $50,000 bonus. We have one child, plan to buy a $500,000 house and both plan to contribute about $8,000 per year to 401Ks.
So the question is - if we choose to live in NJ instead of upper NY approximately how much more will we have to pay every year in taxes?
A. How should I know?
For one thing, I would need to know more specific information about your income and expenses. I have no intention of working up estimated tax returns to answer a free online question. My time is valuable. And I am not looking for new clients!
State income taxes are not the only factor to consider in this situation. You must also look at the real estate taxes for the NJ and NY communities you are considering.
To find out the comparative state income tax costs, provide your tax professional with detailed information on your anticipated income and expenses for the year and pay him/her to do separate estimated tax return calculations.
The questions I will answer in the weekly ASK THE TAX PRO feature are basically about general federal and NJ state issues, and how they might apply to the specific situation of the person posing the question. I attempt to provide as detailed an answer as I can given the information provided in the question.
I currently do not charge for answering such a tax question here. I do it as a “public service” for the readers of THE WANDERING TAX PRO, many of whom are my own 1040 clients who may benefit from the answer.
I am being totally honest when I say that I am not looking for any more tax clients – and I do not ask for tax questions as a way of soliciting new business.
So please be reasonable when submitting your question for consideration. Do not ask me specific questions that require detailed calculations – legitimate questions, but ones that you should be paying your tax professional to properly answer.
And while I have your attention – I receive many email ASK THE TAX PRO questions. If I choose to answer your question I will do it here in a weekly ASK THE TAX PRO posting. I will not provide you with an immediate answer by return email (unless, of course, you are an existing 1040 client, in which case it is not really an ASK THE TAX PRO question), nor will I send you an acknowledgement that your question has been received. If I do answer your question here I will send you an email on the morning of the Wednesday that the answer is posted.
So be patient - and do not send repeat emails with the same question when you do not hear from me right away. If you need an immediate answer to a tax question – ask your tax pro.