timpender
New Member

When I file, will NJ send the Non Resident refund directly to Delaware and credit my resident tax bill?

I have income tax withheld on retirement income for NJ but I am a Delaware Resident. ( Moved but never changed withholding). I prepared a NJ Non Resident and a Delaware resident return. The NJ return shows a total refund of the withheld tax and Delaware shows a credit for the NJ Taxes. When I file, will NJ send the refund directly to  Delaware as a credit? 

State tax filing

Unfortunately, no, New Jersey will not send your refund directly to Delaware.

The IRS and each state tax agency are completely separately. You will receive a refund from New Jersey.

Your Delaware tax return is showing a credit for the taxes paid, and it subtracts from your total state tax due, but New Jersey will not send payment to Delaware to cover this credit.