Property tax deduction on one property in NY and NJ. Confused.

Forum|Forum|1 year ago
June 16, 2025
1 reply
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I am filing state returns in NY where I work (non resident) and NJ - where I live. TT deluxe is suggesting a property tax deduction on my NJ1040 return and recommends that I itemize on IT-196 and also claim the property tax deduction on this form. I only have one house in New Jersey. Is this correct. It seems like double dipping to me. I am only itemizing on NY, not of the federal return.

trjpkhouseAuthor

Level 2

Thanks Terri - this is interesting as I paid to have the turbotax expert go through the return and they agreed that TT was advising correctly to deduct the property tax as an itemized deduction for NY even though I live in NJ. The expert could see that I was filing a non-resident NY return (work) and resident NJ return (where I live). There seem to have been a few people here asking the same question, and several people have answered that NY honors the schedule A itemized deductions - allowing NJ residents working in NY to claim the deduction and even asking them to itemize when they do not itemize on the federal return. The Q attached below is an example where the % income derived from NY is used to prorate the deduction for property tax on a non -resident return. Is the software making a mistake?

property taxes with two states and new york state itemized

when we have 2 states, say NJ and NY and the home is at NJ and paid property tax for NJ home.

I found that the NY state return itemizing include this property tax as well. Is this correct? because that property tax was paid for NJ home.

if not correct, how do I enter correctly or fix? as in federal tax section there is no section to select which state of property tax belongs to

posted

‎April 11, 2023 9:02 PM

last updated ‎April 11, 2023 9:02 PM

2,508

ErnieS0

Expert Alumni

Yes. TurboTax is doing your taxes correctly. All federal itemized deductions are included on your New York return (that's how NY calculates taxes).

You don’t say whether you are filing a resident, part-year, or non-resident NY return.

If you are a resident, NY taxes all your income, so you can claim all your federal deductions.

If you are a part-year or non-resident, NY will prorate your itemized deductions according to the NY percentage of income versus total income. So if you earned 50% of your income in NY, you’ll get 50% of your itemized deductions.

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‎April 12, 2023 5:33 AM

trjpkhouseAuthor

Level 2

Terri - I should have added that it is the TT program that is making the suggestion. The expert and I went through all the prompts and we could find no issues.