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June 6, 2019
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Health insurance and nj state return

  • June 6, 2019
  • 1 reply
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is it normal to get taxed by your state of residence for out-of-state income?
Best answer by ChristinaS

Yes. Every state in the US which has income tax taxes its residents on all of their income, from anywhere.

NJ wages will also be higher than the wages taxed by the state you work in, as NJ taxes health insurance, HSAs, and more.

You do get a credit on your NJ return for taxes paid to another state (to avoid double-tax). Work on the non-NJ return first inside of Turbo Tax, and be sure to look for the Credit for Taxes Paid to Another State within the NJ interview.

1 reply

Employee
June 6, 2019

Yes. Every state in the US which has income tax taxes its residents on all of their income, from anywhere.

NJ wages will also be higher than the wages taxed by the state you work in, as NJ taxes health insurance, HSAs, and more.

You do get a credit on your NJ return for taxes paid to another state (to avoid double-tax). Work on the non-NJ return first inside of Turbo Tax, and be sure to look for the Credit for Taxes Paid to Another State within the NJ interview.