I have seen questions like this answered on the forum before, but I am still confused about NJ and NY taxes. Here is the situation for my son:
- He lives in NY, and works in NJ
- Box 1 is ~$132K
- Box 16 for NJ is ~$114K
- Box 16 for NY is the same has box 1 (~$132K)
I know that I need to do NJ non-resident first.
Q1: In the workflow, I removed the NJ wages, just leaving the NY wages of $132K. Then I entered $114K in the screen which asks how much of the $132K was earned in NJ (since this is box 16). Is this the right thing to do?
This results in NJ taxes of ~$5600.
Assuming this is the right thing to do, I move on to NY taxes, filing as a resident.
Q2a: For NY taxes, I assume I should use $132K as the total amount since that is want is in box 16. And then I claim the $5600 from NJ in form IT-112-R so that I'm not double taxed.
-OR-
Q2b: Do I state that my NY taxes are ($132K - $114K) = $18K, and not file IT-112-R.
Or do I have this all wrong all together?
