Essentially, yes, you would need to indicate that you paid taxes in both states to ensure you receive a credit for the taxes paid in New York on your New Jersey return.
If you follow/review the steps below, your return will calculate the credit in New Jersey for any taxes paid in New York on the same income.
You will be able to claim a credit in New Jersey for any taxes paid in New York as it sounds like all of your income had withholdings in New York and not New Jersey. This credit will offset the amount of income taxed in New Jersey while you were a resident of New Jersey.
To ensure your return is calculated correctly, you will need to confirm a few items:
In the My Info section of TurboTax, confirm that you have entered the correct state information:
- Click Edit to the right of your name
- Confirm your input under #2 Tell us the state(s) you lived in
- Go back to the personal information section, and verify the mailing address and "Other state income" section. Be sure to answer yes to the question asking "Did you make money in any other states?".
Please note the following as it will affect the calculations:
When you are preparing more than one state return, make sure you prepare the part-year resident New York and state tax returns first. Be sure to answer the questions correctly to ensure only income sourced to that state specifically are reported.
Once you have entered all of the nonresident state information, then start your New Jersey part-year state tax return. This will ensure you receive any credits for taxes on income which may have been taxed in New York.
Proceed through the screens in your New Jersey return until you see Take a look at New Jersey credits and taxes. You should see Taxes Paid to Another State under the Credit for Taxes paid. You can edit your information here if needed but the taxes paid to the other state should be listed in this section.
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