Hi,
I am an F1 PhD student who has been in the US for 5 years. This year, I am a tax resident and filing through turbotax. In 2022, I received a 1042-S for an academic fellowship in New Jersey. This income in not taxable in NJ (Exception code 15 on my 1042-S), but it is taxable federally. According to the instructions in here, I added this income under "Other reportable income" and the federal tax paid under "Withholding not already entered on a W-2 or 1099."
When my information is automatically transferred to the state return, turbotax is telling me I owe state tax in NJ for this income. The software does not let me delete this income, so I have no way to certify that this income is not taxable in NJ.
How can I file correctly? This concerns my refund as the extra taxable income is increasing my taxes. One possible way may be to add additional state income not reported in the federal return, and claim this income as negative the amount not taxable in NJ. Is this allowed or correct?
Thank you.
