This isn't a question of something that is taxed in NY that I can get credit on my NJ return. This is not NY source income and therefore shouldn't be taxed in NY in the first place. The instructions for the applicable line on the NY non resident form, IT-203 say:
Line 21: Public employees 414(h) retirement contributions
Are you a public employee of New York State or its local governments?
End Quote
Since it's NOT from New York State or its local governments, my wife's New Jersey 414(h) should not be added back on this line. The amount is not taxable in New York. The issue on this thread is that TurboTax makes it very difficult to file electronically in this situation.
