You've got the correct income, but now you need the tax. To figure this out, take the amount of tax withheld, and subtract the amount of NY refund for your return. If you owe New York, add the amount you owe to NY into this figure. Next, divide the NJ income amount by the NY (full income) amount, which gives you the percentage of income that was double taxed. Multiply this percentage by the adjusted tax amount above, and that is the amount of NY tax that was assessed on the double-taxed income. The NJ credit will either be that tax amount, or the amount of tax that NJ is assessing on the same income. Your NJ tax will not go below zero, and you will not be refunded by NJ for "extra" tax you pay to NY on this income. The following NJ website describes the credit: <a rel="nofollow" target="_blank" href="
http://www.state.nj.us/treasury/taxation/njit14.shtml">http://www.state.nj.us/treasury/taxation/njit...>
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