New York/New Jersey Filing

Forum|Forum|2 years ago
March 3, 2024
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I am filing both part year resident returns for NY and NJ as I moved in August from NJ to NY.

I earned money while a NJ resident working at a school in NY. The school only taxed me NY taxes (no NJ taxes withheld).

2 questions:

Do i have to pay tax to NJ for the money I earned while working in NY but living in NJ?

What do i put in the question on Turbo Tax desktop regarding to the NY Allocation? Would i just put 100% New York State income?

Thanks

LenaH

Yes, your entire year of income would be fully sourced to New York because you earned the money at the school located in New York. Therefore, you would enter 100% on the New York State allocation screens for your W-2 income.

In addition, New Jersey will also tax you for all of your income during the time period you were a resident of that state. However, you will also get a credit of taxes paid to New York on your New Jersey return so you are not double taxed on the income.

It is important to note that this credit isn’t a dollar-for-dollar refund of the taxes you paid to New York for the time period you were a New Jersey resident. Per the State of New Jersey, your credit can't be more than the amount you would’ve paid if you earned the income in New Jersey (rather than New York). This credit amount will be calculated in TurboTax once you enter the income you earned in New York while a New Jersey resident (from January through August).

If you have any other questions, please reply back and we can assist you further.

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