- New York commutersResident and nonresident returns filed together, credits claimed correctly.Learn more about NJ and NY multi-state taxes →
- Equity compensationRSUs, stock options and ESPP shares, planned before you sell.Learn more about stock options and RSUs →
- Business ownersNJ BAIT and NY PTET elections to work around the SALT cap.Learn more about NJ BAIT and NY PTET →
- Inheritance planningHow New Jersey taxes what you leave, and to whom.Learn more about NJ inheritance tax →
Two Chathams, one set of questions
Chatham Borough and Chatham Township are separate municipalities that share a school system, the School District of the Chathams. Chatham station sits on NJ Transit's Morristown Line, with Midtown Direct trains to New York Penn Station, so many households here earn their income in Manhattan. That makes two-state returns, equity compensation and the federal SALT cap the questions we hear most.
Working in New York, living in Chatham
- Two returns. New York taxes the wages you earn there. You file a New York nonresident return (Form IT-203) and a New Jersey resident return, and New Jersey gives you a credit for the tax paid to New York.
- Days at home. Under New York's "convenience of the employer" rule, days you work from home in Chatham are generally still New York days unless your employer requires you to work here. Keeping a work-day log matters.
- Withholding. When New York withholding covers most of your New Jersey tax, small adjustments keep you from owing either state in April. See multi-state taxes.
RSUs, options and bonuses
- RSUs. Shares are taxed as wages when they vest. Employers usually withhold federal tax at a flat 22%, which is often too little for high earners.
- ESPP shares. Holding at least two years from the offering date and one year from purchase turns part of the gain into long-term capital gain.
- Stock options. Incentive stock options can trigger the alternative minimum tax in the year you exercise. We model it before you act. See stock options and RSUs.
The SALT cap and New Jersey property taxes
The federal deduction for state and local taxes is capped at $40,400 for 2026 ($40,000 for 2025), but the cap phases down toward $10,000 once modified adjusted gross income passes $505,000 in 2026. If you own a business, a New Jersey BAIT election can move state tax off your personal return and around the cap. See NJ BAIT and NY PTET.
Planning what you leave
New Jersey repealed its estate tax for deaths after 2017 but still has an inheritance tax. Spouses, children, grandchildren and parents pay nothing; siblings, nieces, nephews and friends can owe 11% to 16%. See New Jersey inheritance tax.
How we work
Most of our work happens through our secure client portal, by phone and by video call, which suits commuters. In-person meetings are available by appointment. We respond within one business day, and we're available Saturdays as well as weekdays.
Frequently asked questions
I live in Chatham and work in Manhattan. Do I pay tax to both states?
You file in both, but you shouldn't pay twice. New York taxes your wages earned there, and New Jersey gives a credit for that tax against your New Jersey tax on the same income.
How much state and local tax can I deduct in 2026?
Up to $40,400 if you itemize, but the cap shrinks once modified adjusted gross income exceeds $505,000 and can drop to $10,000. Business owners may be able to use the New Jersey BAIT election to work around it.
Why do I owe tax when my RSUs vest?
RSUs are taxed as wages at vesting. Employers often withhold only 22% federal tax, so high earners may need to make estimated payments or raise withholding.
Do you serve both Chatham Borough and Chatham Township?
Yes. We work with clients in both, through our secure portal, by phone and video, with in-person meetings in Mine Hill by appointment.