Question

Will be there any tax return if I live in NJ and work in NY and no NJ tax withheld?

Forum|Forum|6 years ago
June 21, 2019
1 reply
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Hi All,

I am filing tax for the first time, so would like to understand whether what I am doing is correct.

My W-2 shows only NY has tax withheld.

I have done my federal and doing for states now.

I did for NY non-resident tax and turbotax shows I got refund of X for NY.

1. When I do NJ resident tax, it asks to remove the duplicated state wages on W-2 and shows options of NJ and NY with same state wage amount. I have a question which state has to be removed?

2. If I remove NJ and go ahead turbotax shows NJ refunds $35 where there is no tax withheld for NJ.

State tax return is almost 87% ie X+ 35 is almost 87% of state tax paid. Is this correct?

T

TomD8

Employee

Complete your non-resident NY return first, before you do your NJ return.

When you do the NJ return, remove the NY wages.

Your income is taxable by both states, but you'll be able to take a credit on your NJ return for taxes paid to NY. Since NY's tax rates are a bit higher than NJ's for most tax brackets, the credit may offset your entire NJ taxes due, and leave you with no NJ refund. NJ will allow you to take a non-resident state credit up to, but not exceeding, the amount of your NJ taxes due.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.