Hi, I am paying taxes from working in another state (NY/ nonresident) of $465, but TurboTax is only allowing a credit on my resident NJ return of $193. Any ideas why?

Forum|Forum|2 years ago
April 7, 2024
1 reply
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Not sure why I would not get credit for 100 percent of state taxes paid to another state.

TurboTax Deluxe Online

JulieS

Yes, New Jersey limits your credit for taxes paid to another state to the amount of tax New Jersey would have taxed you on that income.

This is called the proportional credit limitation (PCL). The PCL amount represents the amount of Income Tax New Jersey would have imposed if the income you earned in the other jurisdiction had been earned in New Jersey.

Since the income tax rate is lower in NJ than in NY, your credit will be less than the amount you actually paid.

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Hi, I am paying taxes from working in another state (NY/ nonresident) of $465, but TurboTax is only allowing a credit on my resident NJ return of $193. Any ideas why?

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