I am a NY State resident. I work in NJ. I received capital gains of 842. from stock sold thru my NJ Employer. Why is the capital gain showing on both my NY and NJ return?

[DS30 · Accepted solution]

The reason that it is showing on both your NJ nonresident return and your NY resident return is because you sold the stock thru your NJ employer and as such, the system is considering it NJ sourced income. If this is not actually NJ sourced, then when you are doing the NJ sourced allocation on your NJ nonresident state income tax return, just make sure not to allocate the stock sale to NJ sourced income. That way it will only be include on your NY resident state income tax return.

[nzgreenacres]

I understand that, but why is it allocated as income to NY as well? I thought the the capital gain should only show on one state.

[DS30]

If your capital gain is related to NJ, then it will be on both returns because
1) You would need to include it on your NJ nonresident state income tax return as NJ sourced income.
2) You would need to include it on your NY resident state income tax return because you need to report all income from all sources (including any capital gains (even if NJ sourced)) on your NY resident state income tax return.

So in all cases, you will need to include it on your NY resident state income tax return.

[nzgreenacres]

Ok thanks