DMarkM1
Employee Tax Expert

Get your taxes done using TurboTax

Yes.  So far you have entered correctly.  Now TurboTax wants to help you claim a credit for taxes paid to another state.  In the NJ return when asked about the "double taxed income" that amount is only the wages earned in NY while you were resident in NJ.  That is true because you already allocated the other income sources according to your residence.  

 

Since you used 70/30 as your residence proportion, apply the same to the wages earned in NY; so 30% belongs to NJ and was double taxed. 

 

The other figure you will need is the actual NY tax on that double taxed income.  That amount is not available in TurboTax since your situation is not typical of part-year returns.  Normally, when someone moves states they change jobs so there is no overlap of taxable income.   In your case you have income that does not overlap (interest/dividends) and some that does (wages) and you only need the tax on the overlapping wages.  

 

You can, however, calculate that number using your NY Tax Summary (see below).   On the NY tax summary divide the NJ wages that your figured earlier by the NY taxable income.  Multiply that result by the NY tax liability.  That will be the NY tax on the NJ wage portion. 

 

Now you can claim a credit on your NJ return for taxes paid to another state.    

 

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu

5. Select "NY Tax Summary"

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