You live in NJ and get taxed on NJ on all income and NJ is a different calculation than NY as NJ does NOT allow certain deductions that NY does. You will get a credit for taxes paid to NY which is a separate part of the interview.... You must first complete your NY return and only then complete NJ. NJ taxes healthcare benefits. (TT will work if you remove NJ too but then you will have to input all the income taxable to NJ that isn't taxed to NY such as Healthcare, vs if you remove NY wages in the NJ prep, it will already be done, saving you time).
**I don't work for TT. Just trying to help. All the best.
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**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
