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Old 29.03.2012, 16:26
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US non residents avoid conducting buisness in NJ

Hello. I have just learned that I must file tax in NJ since I attended a business meeting there in 2011. Evidently I must file a 1040NR and pro rate the "income" for each hour I attended meetings!

I will cancel all my 2012 meetings in NJ and only hold meetings in states where this crazy tax rule does not apply.
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Old 29.03.2012, 16:31
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Re: US non residents avoid conducting buisness in NJ

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Hello. I have just learned that I must file tax in NJ since I attended a business meeting there in 2011. Evidently I must file a 1040NR and pro rate the "income" for each hour I attended meetings!

I will cancel all my 2012 meetings in NJ and only hold meetings in states where this crazy tax rule does not apply.
Do you have a citation for this? There are filing thresholds.
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Old 29.03.2012, 16:36
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Re: US non residents avoid conducting buisness in NJ

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Hello. I have just learned that I must file tax in NJ since I attended a business meeting there in 2011. Evidently I must file a 1040NR and pro rate the "income" for each hour I attended meetings!

I will cancel all my 2012 meetings in NJ and only hold meetings in states where this crazy tax rule does not apply.
New Jersey is a gross income state, has slightly different rules. Well, all states vary with their rules to a certain degree.

Non-Residents are taxed on income from New Jersey sources.

Work performed in New Jersey is New Jersey sourced income.

Non-residents, which I will assume you are, have to file if their gross income from all sources exceeds $10,000 for Single or Married filing separate or $20,000 for married filing joint. Note: ALL sources, not NJ source.

I assume you told your accountant you had a work day or days when you completed their calendar or when they asked you.

Of course, accountants act on information provided.

Unfortunately, the rules are unclear on what constitutes a work day. 1 hour, 2 hours, 3 hours. We tend to take a pragmatic approach i.e. if someone took some vacation in NJ yet checked some emails and pinged off a spreadsheet, would I call that a work day, no. In your situation, you went to new jersey, you had a 1 hour meeting you are on work duties. Was you paid for the whole day or paid for the 1 hour? Was you in and out in half a day or? These are the questions I would ask. Remember, you can use half days also.

the sourcing will merely be a simple pro-ration of NJ days over total workdays.

If you feel you had no true NJ workdays, then tell your accountant so. Then there will be no NJ filing
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Last edited by JBZ86; 29.03.2012 at 16:40. Reason: clarity
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Old 29.03.2012, 17:02
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Re: US non residents avoid conducting buisness in NJ

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New Jersey is a gross income state, has slightly different rules. Well, all states vary with their rules to a certain degree.

Non-Residents are taxed on income from New Jersey sources.

Work performed in New Jersey is New Jersey sourced income.

Non-residents, which I will assume you are, have to file if their gross income from all sources exceeds $10,000 for Single or Married filing separate or $20,000 for married filing joint. Note: ALL sources, not NJ source.

I assume you told your accountant you had a work day or days when you completed their calendar or when they asked you.

Of course, accountants act on information provided.

Unfortunately, the rules are unclear on what constitutes a work day. 1 hour, 2 hours, 3 hours. We tend to take a pragmatic approach i.e. if someone took some vacation in NJ yet checked some emails and pinged off a spreadsheet, would I call that a work day, no. In your situation, you went to new jersey, you had a 1 hour meeting you are on work duties. Was you paid for the whole day or paid for the 1 hour? Was you in and out in half a day or? These are the questions I would ask. Remember, you can use half days also.

the sourcing will merely be a simple pro-ration of NJ days over total workdays.

If you feel you had no true NJ workdays, then tell your accountant so. Then there will be no NJ filing
Swiss flights land in NJ & take off; so if I was on business in the US & spent some hours in NJ
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Old 29.03.2012, 17:03
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Re: US non residents avoid conducting buisness in NJ

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Swiss flights land in NJ & take off; so if I was on business in the US & spent some hours in NJ
Dont panic, connecting flights, or transitional stop overs dont count
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