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April 12, 2024
Question

It-112-r

  • April 12, 2024
  • 1 reply
  • 0 views

I'm having the same issue as others where it says "TP should not be greater than the tax imposed by another state." 

We live in NY, but my husband works in NJ. 

    1 reply

    AmyC
    Employee
    April 16, 2024

    You claim tax credit for the lower of the state tax liabilities. Therefore, you can't claim a NJ credit that is bigger than the NY tax. Review you entries for the NJ income and NJ tax liability on the income. NJ taxes income differently than NY so there are adjustments between the states.

     

    For example: NJ taxes money you set aside in your retirement plan. Each state has different rules. 

     

    You get credit for the lower state tax on the lowest taxable amount.

    • Each state calculates taxable income differently. 
    • Each state has its own tax rate/ system.
    • You get the lowest of both categories as a tax credit.
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