Thread: tax question

Originally Posted by Callme_CO

Is it legal for a county to tax a federal employee on his gross income? The reason i ask is. I dump about 5000 a year in tsp so my gross and federal taxable amount are different by about 5000. The county i work in is taxing people 1% on their gross income. So it's like i'm paying taxes on my tsp contributions. Is that legal?

Here in New Jersey, your taxed for the total amount of your gross pay.
When retired, they don't tax the portion you contributed, based a some
fang-dangled formula. I too wish NJ handled taxation as the Fed's do !
Thus making our TSP a true Tax Defered investment. Pooh Jersey !

Originally Posted by Callme_CO

Is it legal for a county to tax a federal employee on his gross income? The reason i ask is. I dump about 5000 a year in tsp so my gross and federal taxable amount are different by about 5000. The county i work in is taxing people 1% on their gross income. So it's like i'm paying taxes on my tsp contributions. Is that legal?

When in Rome..

What country you talking about?

Originally Posted by Buster

When in Rome..

What country you talking about?

That was "County" Buster ! Not "Country" !

Maybe you should become an "S" Corporation.

New Jersey Statutes 54A:5-9 Taxation of S corporation shareholders
11. An S corporation as such shall not be subject to the tax imposed by the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., ...

http://law.onecle.com/new-jersey/54a...act/index.html

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