Sold NJ House Jan. 2020 but moved out of state in 2019 (Principal Residence). How to file NJ tax return and new state return.

rgs92 · ‎December 12, 2020

We moved out of New Jersey in July 2019 but did not sell our house there until Jan. 2020 (when we closed on the sale).

How do I file the NJ state NR (non resident) 2020 tax return? I had no NJ income in 2020. I was not a resident there and never was in NJ in 2020.

What do I need to do in Turbo Tax 2020 to handle this?

If I need to file 2 state returns (current state and New Jersey), how do I do this in Turbo Tax? I did not live in NJ for any of 2020.

We meet the requirements for the $500,000 exclusion. (The house was our principal residence for decades until we moved out in July 2019.)

Thank you.

Thanks.

fanfare · ‎December 12, 2020

If your closing attorney handled the closing properly, and you had to pay a realty transfer fee , you should have an Estimated Tax receipt and you have to file a Non-resident return to get that money back.

Hal_Al · ‎December 12, 2020

If your capital gain is totally excluded from the federal return, it is not subject to tax in NJ either.

If NJ income tax was withheld at closing, you will need to file a NJ non resident return (form NJ-1040-NR) to claim a refund. It is possible to get an advance of the refund by filing special form A-3128 after the closing.

Q. If I need to file 2 state returns (current state and New Jersey), how do I do this in Turbo Tax?

A. In the personal info section, you will be asked if you made money in another state. Answer yes, even though you technically didn't. That will get TT to generate the additional state return. You will have to pay a TT fee for the additional state software.

Reference: https://www.state.nj.us/treasury/taxation/documents/pdf/guides/Buying-or-Selling-a-Home-in-New-Jerse...

includes form links

Sold NJ House Jan. 2020 but moved out of state in 2019 (Principal Residence). How to file NJ tax return and new state return.

State tax filing

State tax filing