@Deetee wrote:
When I fill out my NJ-COJ form, is Line 1 suppose to be 100K and Line 2 to 150k? If so, it would seem like I am only getting about 66% back from the tax amount that I paid to NY.
Yes, that's correct. The Credit for Income Taxes Paid to Other Jurisdictions on your New Jersey tax return is about 66% of your New York tax. As it says in the paragraph that I quoted above from New Jersey Publication GIT-3W, "The credit represents the amount of New Jersey Income Tax that you would have paid had the income been earned in New Jersey, or the amount of tax actually paid to the other jurisdiction, whichever is less." New York tax rates are higher than New Jersey rates, so the credit is only the amount of New Jersey tax on your New York income. The effect is that you pay the full New York tax. The credit eliminates any New Jersey tax on your New York income, but it does not reduce or cancel out your New York tax. You still pay the full New York tax.
@Deetee wrote:
Just wanted to see if I am doing something wrong or it is normal to get such a low percentage in ny tax credit for my situation.
Yes, it's normal, because of the difference in tax rates between New York and New Jersey. You are not doing anything wrong.
