DMarkM1
Expert Alumni

State tax filing

The person 2 income will be allocated on the return according to the state person 2 lived in when earning the income; same a person 1.  The difference will be that since no tax was withheld for the NJ allocated income the return will show that taxes were underpaid for NJ.  However, the AZ return will show that too much tax was paid.  There will be no double taxation/overlap. 

 

 

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