“Out the following scenarios, which one will save me more money?
Scenario 1: Living in Journal Square, NJ, & Working in NYC
Scenario 2: Living in Jamaica & Working in NYC” I guess it is really hard to choose between the two options; it depends on many variables. You may contact a tax pro in your local area for professional help on your issue.
“Also, how the taxes will work out in the first scenario? Will I have to pay separate city taxes to NJ?”===I assume that you are a FY resident of NJ and a non resident of NYS, then as there is no State Tax Reciprocal Agreement between NYS and NJ, you need to pay tax on your NYS source income to NYS and also need to file your home state return to claim your tax that you pay to NYS. NYCis one of the few cities in the U.S. that have a personal income tax. NYC income tax is paid on your New York State income tax return. There are no deductions available, but there are separate credits for NYC income taxes.Every income-earning individual, estate and trust residing in NYC must pay NYC personal income tax. Taxpayers who have lived in NYC for only part of the year calculate their tax based on the days lived in NYC. NYC income tax is based on NYS taxable income, which is gross income less NYS tax deductions. There are no deductions specifically for NYC income tax.
For second scenario, as a US resdident for tax purposes, you are subject to US taxes on your world wide and US source incoem regardless of your location.You need to report all your incoem that you earn in Jamaica and if youpay tax on it to Jamaican taxing authority(ies) , then you need to fiel form 1116 to claim your taxes paid to Jamaica on your US return. I guess you need to get professinal help on your visa situation, expiration , status , extension or etc
“What will be my monthly paycheck after all the withholdings? (a rough amount will also do, I am planning on saving 10% in my 401K).”=======It depends on the number of withholding allowances on your W4.Pleae visit the IRS website here and follow the instructions; 2013 Withholding Calculator