1,Where is it better to live (taxwise) NY or NJ?
Generally speaking, from a tax point of view some people find that living in NJ will result in lower State income taxes but then depending on the home you purchase, you will find that NJ property taxes are significantly higher than that of NY State. Thus, as long as you don't own a home in NJ, you could be taxed at a lower rate in NJ.
2,Will have to make two tax statements?
Yes, as a resident of NJ, and being employed in NY, you would be filing a multi-state tax return, that is you will file both a NJ and NY state tax return.
3.How can I calculate how much I will be taking home?
Actually, you can use about 60% of your gross as a take home net pay, assuming you are earning $70,000. but, this will again depend on your deductions.
4,Can I adjust federal withholding?Or is it equiveleant to what I will have to pay.?[/quote]
Yes, you can adjust your federal withholding by claiming more dependents or increasing your federal income tax withholding by an amount that you wish to avoid paying additional taxes on April 15th, 2009!