Question

Self employed NJ resident and had PA taxes witheld on PA earned portion of self employed income. Need some help!

Forum|Forum|6 years ago
May 28, 2020
1 reply
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I live and work in NJ as sole proprietor of my own business. A fraction of my self employed work happens in Pennsylvania and I had PA taxes withheld on a 1099-MIsc. I did my federal return in TurboTax and then my resident state of NJ. Then I bought PA return and went through step by step and it just looks all wrong! Has me owing more money to PA. Obviously incorrect. Started reading information on the subject and found that the Non-resident State return should be done first. How do I get this to make sense? Do I delete one or both State returns and start over? Thanks in advance!

TurboTax Home & Biz Windows

B

BillM223

Yes, please delete both state returns (making sure to save any data that you need).

When you do your federal return, you will enter your business information under the Business Tab in TurboTax Self-employed/Home and Business (different names for the Online or download version).

Then you will add the Pennsylvania return. You will confirm that you are a nonresident. As you progress through the screens, you will eventually come to one that is headed "How Pennsylvania Handles Income for Nonresidents".

Follow the instructions on the following screens and your income and deductions will be allocated.

Then do your New Jersey return. I would expect that your Pennsylvania taxes paid (if any) will appear on line 42 on the NJ-1040 P2 (Credit for Income Taxes Paid to Other Jurisdictions).

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J

JR54Author

Thanks for the response,

I think I have this handled. First time through I didn't notice the choice to "exclude this form from the return". Once I excluded my Schedule C the Tax amounts all made sense. The schedule NRH puts just the apportioned amount of net income onto the PA schedule 40.