I live in NJ and work in NY and have two questions regarding dependent care deductions and paid family leave.
1. I elect to have $5,000 of dependent care benefits deducted annually that is not taxed on the Federal level. I am filing my NJ state tax return, and I am led to believe that this $5,000 does get taxed on the state level and needs to be added to my Box 1 wages. Is this correct, or am I mistaken?
2. I took some time off at the beginning of 2019 and was compensated under the NY State Paid Family Leave Act. I received a total compensation of $1,175 for this and included it in my taxable income on the Federal level. It is my understanding that this compensation would not be taxed at the state level in NJ. I am trying to file my NJ return, but this compensation for paid family leave is auto-populating from my Federal return under "other non-wage income." Again, am I mistaken, am I missing something, or is this correct?
