Q: Hello. I live in Nj and work in Ny and i get both taxes deducted on my paycheck is this normal

A: Yes. Although you do have to file taxes with New York and New Jersey, you don't have to pay double taxes. If you live in New Jersey, the state will tax you on your income regardless of where you work. If you work in New York, then New York will tax you on your New York sourced income. However, you will not be required to pay state income twice. New Jersey will allow you to take a credit on your New Jersey income tax return for the tax you paid to another state. This eliminates double taxation. What you should do is include your New York wages on your New Jersey income tax return. In New York, you will need to file a non-resident return (IT-203). In New Jersey, you will need to file as a resident (NJ-1040).

New Jersey residents will receive a tax credit on their New Jersey return for any tax paid to New York, or another state, on income earned in and taxed to both states. This requires filing a Schedule NJ-COJ “Credit for Income or Wage Taxes Paid to Other Jurisdictions.” This tax credit provides relief from double taxation. It is usually best to consult with a tax attorney or accountant that specializes in handling multi-state tax returns. The final result will be that you only pay state tax on your income to the state where the income is earned.

If you have been living in New Jersey and working in New York for a number of years and have not had your tax returns filed properly, you will want to go back and file a form NJ-1040X “New Jersey Amended Income Tax Return” for each year that you did not have the tax returns filed properly. You may have refunds due to you.

This link will give you more information:

https://www.nj.gov/treasury/taxation/njit14.shtml