DawnC0
Intuit Alumni

State tax filing

If you work in New York and live in New Jersey, you would have to pay New York income taxes as a nonresident and also, pay New Jersey income taxes as a resident since you live in New Jersey.  However, residents of New Jersey (and most other states) can take a tax credit for taxes paid to other jurisdictions.

If the income is doubled on the state section on your W-2 (it is required by law to be reported this way), you will be able to adjust this amount on the NJ resident state return, see image attached.  On the next screen, you will be able to ''remove'' those wages from the ITR.  

Prepare the NY nonresident return first and then TurboTax can apply a credit for the taxes paid to NY on your NJ resident return.  

 When would I have to file returns in more than one state?