I am NJ resident for the whole 2023 year, work in NYC, have to pay the city tax. How in TurboTax can I claim credit for the NY City tax?

You can claim a credit for New York City taxes paid by doing the following in TurboTax:

You will file two state income tax returns. One for New York (NonResident ) and one for New Jersey (Resident).  

You are considered a Nonresident of a state for tax purposes if you did not live in that state at any time during the tax year, but you did receive income that is sourced from that state because you worked in the state but didn't live there.

Once you've determined that you need to file a nonresident state return, you should make sure you've filled out the "Personal Info" section correctly as follows:

1. Go to  "My Info"  in the menu.
2. Scroll down to "Other State Income" On the "Personal info"  screen, scroll down to Other State Income, and 
3. Select "Edit".
4. You will see a screen "Did you make money in any other states?"Answer "Yes" and make sure your nonresident state (NY) is selected from the drop-down.
5. Select "Continue" 

Once your federal return is complete, you'll automatically be moved to the "State" tab, where you'll see your nonresident state (NY) listed in addition to your resident state (NJ).

To ensure accurate calculations, always complete the nonresident return first, so your resident state can give you a credit for any taxes paid in that situation.

Make sure to enter all of your forms W-2 as shown.

Click here for information on filing nonresident state tax returns.

Click here for "Why Would I Have to File a NonResident Return?"