NJ Resident who Works in NY Getting NJ Tax Credit - Confused about Amount Displayed

Forum|Forum|2 years ago
March 17, 2024
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Hi,

I'm a NJ resident who works in NY. I understand that the tax rate in NY is higher than in NJ and that I can only receive a credit up to the amount of tax that would be owed if that income was earned in NJ (so, even if I paid $3000 in tax in NY, I won't receive a $3000 credit for my NJ tax).

My question is about the TurboTax software - TurboTax calculated that I am owed a credit of $2500 for paying NYS tax (this is displayed in the "Credit for Tax Paid to New York" screen). However, when I click on the continue button, the credit amount displayed on the next screen ("summary of taxes paid to other states") is a different number (about $400 less than the prior screen). If this isn't a bug, it should be explained to the user why the amounts are different. Any ideas? Am I completely missing something? Thank you!

Vanessa A

Without seeing the screens you are talking about, it is likely the amount you are actually getting as a credit. The amount that if you looked at your NJ-1040 Line 44, this is the number you would see there.

So, on the first screen, the credit would be the number that you paid to NY on the next screen, the actual credit.

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