NJ & NY taxes

Forum|Forum|2 years ago
March 29, 2024
1 reply
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I have seen questions like this answered on the forum before, but I am still confused about NJ and NY taxes. Here is the situation for my son:
- He lives in NY, and works in NJ

- Box 1 is ~$132K

- Box 16 for NJ is ~$114K
- Box 16 for NY is the same has box 1 (~$132K)

I know that I need to do NJ non-resident first.

Q1: In the workflow, I removed the NJ wages, just leaving the NY wages of $132K. Then I entered $114K in the screen which asks how much of the $132K was earned in NJ (since this is box 16). Is this the right thing to do?

This results in NJ taxes of ~$5600.

Assuming this is the right thing to do, I move on to NY taxes, filing as a resident.

Q2a: For NY taxes, I assume I should use $132K as the total amount since that is want is in box 16. And then I claim the $5600 from NJ in form IT-112-R so that I'm not double taxed.

-OR-

Q2b: Do I state that my NY taxes are ($132K - $114K) = $18K, and not file IT-112-R.

Or do I have this all wrong all together?

Not A Product Question

ee-ea

Employee

Q2a is right. 114 of 132 is double taxed. Credit is 5600.

flyeriiAuthor

Thank you for the answer.

I'm assuming that what I said regarding (1) is correct?

DawnC

Employee

Yes, you entered it correctly, applying 114K of wages to NJ. When you said ''In the workflow, I removed the NJ wages, just leaving the NY wages of $132K'', I am not sure what you meant, but his NJ return should reflect 114K of wage income. His resident state, NY, will tax all of his wages and NJ should only tax the wages earned while working in NJ. And you correctly took the credit for taxes paid to another state on his NY return.

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