HARDYSTON TOWNSHIP, NJ (Sussex County) — U.S. Congressman Josh Gottheimer (NJ-5) and NJ State Senator Steve Oroho (LD 24) Wednesday announced new efforts to fight back against the State of New York that is continuing to collect state income tax from New Jersey commuters who have been working remotely since the COVID-19 pandemic began.
In a letter to the U.S. Treasury Secretary and IRS Commissioner today, Gottheimer and Oroho asked for new federal guidance to make clear that states cannot tax those who neither live nor work within their boundaries.
Prior to the pandemic, about 400,000 New Jersey residents typically commuted to New York each day for work, and the income taxes paid by New Jersey commuters working in New York City have historically equaled the total income tax owed by 1.3 million people in the Western New York region, including places like Buffalo and Rochester.
On New Jersey residents’ 2020 state income tax forms, nearly $3 billion will be heading to New York, instead of supporting New Jersey.
New Jersey commuters would have lower taxes if they only had to pay New Jersey state income tax, since New York’s rate are higher.
- A teacher living in New Jersey and making $50,000, who worked from home over the past year rather than commuting into New York, would save $1,500 if they only had to pay New Jersey state taxes.
- A New Jersey commuter making $100,000 would save $2,900.
- A New Jersey commuter making $200,000 would save $8,555.
“We’re formally requesting that the U.S. Treasury Department and the IRS provide new federal guidance to our residents, especially as the new May 15th tax date approaches, to make clear that states cannot tax those who neither live nor work within their boundaries,” Gottheimer said. “Doing so will help New Jersey families keep more of their hard-earned dollars in their own pockets, and to ensure their tax dollars are going to support our own state, instead of someplace else.”
“In a clear overreach of state-level taxing authority, New York is attempting to apply their state tax regime upon New Jersey residents who have not worked in their state since the pandemic began,” wrote Gottheimer and Oroho in a letter Wednesday to U.S. Treasury Secretary Yellen and IRS Commissioner Rettig.
Gottheimer and Oroho held a press conference Wednesday in Hardyston Township to help cut taxes for New Jersey workers and families, and to support our own state. They were joined by Hardyston Township Mayor Brian Kaminski.