Somehow the form has a number for credit that is larger than the actual tax liability, which isn't allowed. Go back and take a look at the actual NJ tax liability and enter that for the tax liability into NY program.
You get credit for the lower state tax on the lowest taxable amount.
- Each state calculates taxable income differently.
- Each state has its own tax rate/ system.
- You get the lowest of both categories as a tax credit.
Follow these steps to locate your tax liability for NJ
- Log into your return
- Select state taxes
- Enter the non-resident NJ for which you need the liability
- On the left, go to Tax Tools
- Select Tools
- Select View Tax Summary
- You will see Summary of your NJ Return at the top.
- Locate the line that says Total Tax
Some states tax income the federal does not. For example: NJ taxes money you set aside in your retirement plan. Each state has different rules.
@ltra922
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