- Equity compensationRSUs, ESPP and options, planned before they vest or sell.Learn more about equity compensation →
- NJ BAIT for partnersThe entity-level election for partnership and S corporation owners.Learn more about NJ BAIT →
- Manhattan commutersNew York and New Jersey returns prepared together.Learn more about multi-state returns →
- Inheritance planningNew Jersey's inheritance tax, and New York's estate tax on property there.Learn more about NJ inheritance tax →
Tax work that fits Madison
Madison, the "Rose City," is a borough of about 16,000 people built around Drew University and a downtown on the Morristown Line, with direct trains to Midtown Manhattan. Many households here combine high earned income, equity compensation and investment accounts, and many own a share of a professional practice. For them, the return is the last step; the planning happens during the year.
High-income tax planning
- New Jersey's top rate is 10.75% on income over $1 million, so the timing of bonuses, option exercises and large gains can matter at the state level as well as the federal.
- The federal state and local tax cap rose in 2025 but phases back down for higher incomes. For owners of partnerships and S corporations, NJ BAIT can still move state tax out from under the cap.
- Charitable giving. Starting in 2026, new federal limits apply to itemized charitable deductions. Bunching gifts or using a donor-advised fund can keep more of the deduction.
Partners in professional firms
If you're a partner in a law, medical, accounting or consulting firm, your K-1 may carry guaranteed payments, income from several states and a BAIT credit. We reconcile the K-1 to your return, claim the BAIT credit on your New Jersey return and plan your estimated payments around distributions.
Commuting to Manhattan
Madison residents who work in New York file a New York nonresident return and claim a credit on their New Jersey return. New York City's income tax doesn't apply to nonresidents, but New York's convenience rule can tax the days you work from home. We prepare both returns together.
Estate and inheritance planning
New Jersey repealed its estate tax for deaths on or after January 1, 2018, but its inheritance tax still applies to transfers to siblings, nieces, nephews and unrelated beneficiaries. Transfers to spouses, children, grandchildren and parents are exempt. If you own real estate in New York, such as a vacation home, New York's estate tax can apply to it even though you live in New Jersey.
How we work
Most of our work happens through our secure client portal, by phone and by video call, so you don't need to take time off to drop off documents. 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
Does New Jersey have an estate tax?
No. New Jersey repealed its estate tax for deaths on or after January 1, 2018. Its inheritance tax still applies to transfers to some beneficiaries, such as siblings, nieces, nephews and friends; transfers to spouses, children, grandchildren and parents are exempt.
Is NJ BAIT worth it for a partner in a professional firm?
Often, but the firm makes the election, not the individual partner, and it doesn't help everyone. Whether it saves you money depends on your federal itemized deductions, your income level and the firm's other partners. We can run the numbers.
Do I owe New York City tax if I commute from Madison?
No. New York City income tax applies only to city residents. You'll file a New York State nonresident return for your New York wages and claim a credit on your New Jersey return.
Do you meet with clients in person?
Yes, by appointment. Most clients work with us by video call and phone, and share documents through our secure client portal, so an office visit is never required.