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of where you live or where your employer's main office is located. , the City holds the employer liable for withholding the tax. Therefore, you do not have to file a Middletown tax return if you work in Middletown but live elsewhere.Exceptions to this: You are subject to tax on all income earned while. 1  If you are a Federal employee working in the City of Middletown and your city tax is not withheld you must file a Middletown tax return.2  If you are self-employed in the City of Middletown and live elsewhere, you must file a Middletown tax return. If you are a Federal employee working in the City of Middletown and your city tax is not withheld you must file a Middletown tax return. 2  If you are self-employed in the City of Middletown and live elsewhere, you must file a Middletown tax return.
If you live in New Jersey and work in New York, youâll have to file a tax return for both states. The state of New York requires you to pay taxes on income you earned working there, even though you live in New Jersey.You must report all your income on your New Jersey return.However, you will get a credit for the taxes you paid to New York. You will need to: 1  Complete your federal tax return (your entries will transfer to the state returns).2  Under Other State Info, be sure to enter Yes to I made money in another state and select New York from the drop-down list. 3  Prepare a Non-Resident Return for the state of New York. Prepare a Non-Resident Return for the state of New York. 2  Follow the steps in the section below only reporting the income and withholdings relevant to New York. 3  Then prepare a Resident Return for New Jersey. 4  You will report all of your income, regardless of where you earned it.