Why am I showing business income from New Jersey when my business is solely carried out in other states?

Forum|Forum|6 years ago
March 30, 2020
5 replies
27 views

We are married filing jointly for 2019. We are full time residents of NY. I have a self-employment business that exclusively earns 1099 income from CT. My wife has a separate self-employment business that exclusively earns 1099 income from NY.

While filing New Jersey non resident state tax, it is showing taxable income on both of our self-employment business although none of our 1099 income is from NJ.

Is this normal? Shouldn't it have no taxable business income for New Jersey if our self employment 1099 income was exclusively earned from NY and CT?

TurboTax Self Employed Online

SusanY1

Level 15

As you go through the interview for New Jersey, you will be given the opportunity to tell the program which income is and isn't included in your New Jersey nonresident report. You will need to manually adjust the amount of income.

This is done from the screen that reads "Business Activities Outside New Jersey". Even though it sounds as if 100% of your business was outside of New Jersey in order to enter this part of the interview answer Yes to "Did you carry on business activities inside and outside New Jersey during your period of nonresidence?" so that you can indicate that the income was earned outside of New Jersey.

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sfoksnAuthor

Level 4

@SusanY1

Thank you for your input. After answering Yes to the question that you mentioned and putting in the business location outside NJ, I allocated 0% of business income to be from NJ.

However, on the Business Summary under State Tax return, it still shows positive taxable amount. Is this correct? How can I ensure that I am not overpaying taxes?

Thank you!

AmyC

Level 15

Please take a look at your tax summary.

Select Tax Tools on the left hand side of your screen,
Select Tools,
Select View Tax Summary,
Select NJ Tax Summary on the left hand side of your screen.

Is the NJ gross income correct? If so, click Back on the left tab and you are good. If not, contact a specialist that can work through that section of the return with you.

In the program, it should be showing business income and then reporting it as $0 taxable.

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