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February 4, 2024
Question

why does new jersey charge taxes on interest earned by the new york resident?

  • February 4, 2024
  • 1 reply
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why does turbo tax calculates taxes on interest income for new jersey to a new york resident

    1 reply

    February 12, 2024

    What you state isn't untrue, but it's not the whole story.

     

    On a nonresident New Jersey return, tax is calculated on total taxable income from all sources, just as computed by full-year New Jersey residents.

     

    However, tax is then assessed on a prorated basis, based on the ratio of gross income from New Jersey sources to gross income from all sources. 

     

    So, yes, your New York income can be taxed, but it's assessed on a prorated basis.