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March 3, 2025
Question

New Jersey Non Resident Tax Filing - Total Wages too high

  • March 3, 2025
  • 2 replies
  • 0 views

For my NJ non-resident tax filing, TurboTax is automatically adding all states income. I am a resident of MA and my MA state income already includes income earned in other states as well, so the NJ total wages are $15k too high, and my tax liability is inaccurate. How do I stop the program from doing this?

 

More detail:

  1. I am filing in CA, MD, and NJ as a non-resident and MA as a resident. 
  2. My total federal wages (box 1) and MA wages (box 16) are both $108K
  3. Turbotax is summing all state wages under NJ non-resident filing to show $123K total wages.
  4. My 401K contributions total $3300 (I know these are not tax-deductible under NJ, but I still don't need all my state incomes being summed) 

2 replies

anon40Author
March 8, 2025

Hello, I would appreciate a reply to this!

March 10, 2025

Most states start their tax calculations with the Federal AGI amount, so if you see this amount at the beginning of your state form, it's not unusual.  They then adjust their calculations from there.  You'll see this on the New Jersey Form 1040, with Column A showing the Federal Amount and Column B showing the NJ amount, and on the Income and Deductions Summary page in the NJ interview.

 

As you proceed through the state interviews, you get a chance to subtract various types of income that don't belong to that state, so pay close attention to the questions on each screen.

 

In New Jersey, look for a screen titled 'Did you earn all your wages in New Jersey?' where you can allocate the correct amount to NJ.

 

Here's more info on How to File a Non-Resident State Return.

 

@anon40 

 

 

 

 

 

anon40Author
March 12, 2025

I understand this, but the gross income that NJ calculates is incorrect. It sums my total state W2 wages. Since I am an MA resident, my MA W2 already totals income I have earned in all states. So summing MA + the other states' incomes is double counting income. My wages earned in NJ are correct, but the tax rate is calculated on the gross income, not the wages earned in NJ. Since my gross income is higher, my taxes owed on the amount earned in NJ are higher and this is incorrect.

 

Where can I adjust the NJ gross income amount?

March 18, 2025

You don't need to adjust the New Jersey Gross Income Amount, which shows on Line 29 on Form 1040NR.

 

The amount of your NJ income is calculated as a % of your Total Income (Line 41).

 

So the tax amount that shows on Line 40 is for your total income, then NJ takes the calculated % of that to arrive at your NJ Tax on Line 42. 

 

@anon40