Yes this seems weird to me. There are millions of NJ homeowners who work in NYC and their property taxes are above 10K/15K.
According to the "Worksheet I instructions", there is special handling for New York State workers.
"Income From New York. When claiming a credit for taxes paid to New York, the amount on line 1 must reflect the “New York State Amount” actually taxed by New York from the New York IT-203. Certain adjustments may be necessary to determine the income actually taxed by New York. If you are subject to the New York tax on lump-sum distributions, complete separate Schedule NJ-COJs for the ordinary income and the lump-sum distribution."
I am not sure if the language is vague OR There is some way to override this deduction/credit choice.?
