Yes. New Jersey bases its tax rate on your total income, not your NJ income which is why you include your total income on the NJ return. This is the way most states do it.
If you made $8,000 in NJ and $80,000 total, your NJ tax rate would be the tax rate on $80k, not the tax rate on $8k.
But you would only be taxed on $8k.
Suppose the tax on $80,000 is 5% or $4,000. Since you only earned 10% ($8/$80k) of your income in NJ, your tax would be 10% of $4,000, or $400, not the 0% rate for income under $10,000.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
