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State tax filing
The New Jersey tax liability on your NJ nonresident return is $3,205 so that’s the number to use as tax paid to NJ on New York Form IT-112-R.
Your tax credit to New York requires an adjustment because your NJ wages are higher than your NY wage due to differences in the way each state taxes income.
NY doesn’t give you credit for the additional amount taxed by NJ for the same job. Generally, this happens because NJ taxes some retirement plans that NY does not.
For example, if your NJ wage is $60,000 and your NY wage $50,000, you can only claim credit for tax paid on $50,000 of your $60,000 of NJ wages, because NY is only taxing $50,000 on the NY return.
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April 17, 2023
12:44 PM