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February 28, 2025
Question

TP should not be greater than the tax imposed by other state

  • February 28, 2025
  • 1 reply
  • 0 views

@LenaH or any expert, can you help out?

 

I live in NY and work in NJ. I keep getting the error. I see that you suggested to others the step and the amount to which they should change it. Can you help me too?

 

 

    1 reply

    March 3, 2025

    Since you live in NY and work in NJ, your income is taxable to both states. To avoid paying tax twice, NY will give you a credit for the taxes paid to NJ. The error that you're getting is because the credit that's being claimed on the NY return is more than the taxes you're paying to NJ. 

     

    To fix this error, make sure your NJ return is complete first.

     

    Then, in the New York section, click through until you get to Take a look at New York credits and taxes. Choose Taxes paid to another state under the Credit for Taxes Paid section.

     

    Click Edit next to NJ on the Other State Tax Credit Summary. Make sure the amounts shown are correct. If not, update the amounts by entering in the Amount, if different boxes. 

     

    Your NY tax credit should update and the error should be cleared.