Question

Do I pay NJ tax for the income from TX

Forum|Forum|4 years ago
June 15, 2021
1 reply
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I worked in TX in first half year of 2020, and a resident of TX for the whole year. I went to NJ from July to the middle of December, and went back to TX for Christmas. I didn't have a permanent place in NJ, I didn't change my driver license, license plate. I believe I am nonresident of NJ for tax purpose. Turbotax calculates the NJ state tax based on my total income of TX and NJ, and multiply the percentage of NJ income over total income. I think the calculation method is wrong. Considering both TX and NJ income makes my tax rate high.

Can anyone advise how to make Turbotax calculate NJ tax using only NJ income?

Thanks,

Henry

Multiple States

S

SundayInSalem

TurboTax is correctly calculating your New Jersey income tax. Many states use the method you described whereby a base tax is first calculated as if all your income was earned in the state. Then the actual tax is the percentage of NJ income ÷ total income.

NJ taxes nonresidents on income earned while being physically present within the state (and sometimes, when telecommuting), so any income you earned while you are in NJ is taxable to the state, even if you stayed with friends or lived in a hotel.

Changing your driver's license or registration or signing a lease only changes whether you would file as a part-year resident or nonresident. It does not affect whether you have to pay tax on income earned in NJ.

New Jersey, Income Attributable to State Sources