NJ resident, worked part time in PA and had income and tax on W-2 due a PA local municipality of $640.54 (this is the tax)
TT calculates the credit on my return as only $112.
Here the issue:
- I've done this for several years in a row with TT and the NJ credit is always the same as the PA municipal tax paid
- I've looked at all the past year's NJ-COJ forms done in TT. In every year, the value in box 9a is the amount of tax paid.
- ** I do understand that the ultimate credit is a calculation on this form, and may be less. But the box 9a is the amount from the W-2 for local taxes paid. ** note the value in box 9a is supposed to be the value of the taxes paid, per the NJ tax directions.
- I also have non-resident tax in CA and when I look at that NJ-COJ form, box 9a is exactly equal to the tax paid to CA.
- In the NJ-COJ form for the PA municipality credit, box 9a is $112 for some reason. Why is this? As this ultimately makes the credit significantly less ($112 rather than $641)
Here's the weird part:
- If I go back to my W-2 and change only the local tax income tax (box 19) from $640.54 to $640.44 (only $0.10 difference!!) the box 9a on NJ-COJ for the PA municipality changes from $112 to $640!! And then I get the full credit!
- Similarly, if i go to the actual NJ-COJ form in TT and use the smart worksheet, i can put the $640 amount in Column B / row B (rather than the $641 that is in Column A / row B), and again the box 9a changes from $112 to $640 and I get the full credit....
HELP. This makes no sense.
