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I did a bit research, but am still confused.

TX does not collect state tax, but NJ does.

Say I have only one wage (just to simplify my case), which comes from a NJ-based company for which I remotely work from my TX home. TX won't tax me on the wage, but I don't know if NJ will.

I simulated this with TurboTax, it turns out all depends on how I answer the question: Did you earn all of your wages in New Jersey? If I answer yes, I found I will pay a few thousand dollars as NJ state tax. If I answer no, then I need enter how much is earned in NJ, I enter zero and I found own zero NJ state tax. If I enter 10k, I'll pay some NJ state tax.

Below this question in TurboTax, there's a message saying If you had wages earned both inside and outside New Jersey for the same employer, and you want to calculate the wage amount based on the number of days you worked in New Jersey. Select Split wages by days

Looks like the wage is split based on how many days I physically work in NJ, which is zero (just to simplify the case, since the fact is I worked 5 days or so in NJ headquarter) and I found I pay zero NJ state tax.

This is a bit different than what I understand from "necessity versus convenience" rule, which NJ state collects tax on the wages that remote workers earn simply because it's more convenient to work remotely. This is more like my case, I could work at NJ headquarter, as I do programming/coding. So, it's convenient for me to work remotely, rather than necessary.

Should I pay NJ state tax?

  • Your income is earned in Texas. – ceejayoz Mar 14 '18 at 20:58

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