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Get your taxes done using TurboTax
Hi, @Sharielly ! The main thing to keep in mind in your situation is that you will be taxed on this income in both NY and NJ. BUT, you can claim a credit on your NY return for the taxes paid to NJ, so you won't be double-taxed. To do this in TurboTax, you want to make sure you complete the NJ return first, so that the amount of tax paid to NJ has been calculated. Then, when you do the NY return, be sure to visit the "credit for taxes paid to other states" section, which can be found under the Credits heading. TurboTax will pull in the information from the NJ return.
If you did all this correctly last year but still owed more than you wanted to one or both states, then one solution could be to simply increase your state withholding to cover that amount. For example, if you owed $5,000 to NY, and you're paid 26 times per year, then request to have an additional $192 withheld per paycheck. I usually suggest adjusting withholding if you owe more than $1,000 when you file your return. If you owe less than that, I personally feel like that's a fine result, just make sure to budget for it. Hope this helps!
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