I filed my 2021 taxes via TurboTax Premier. There were no issues raised via the pre-e-filing TurboTax review. I was expecting a federal refund of approx. $3,300 (received) and a NJ refund of approx. $850. I have now received an underpayment notice from NJ for approx. $4,200 + penalty + interest.
I believe I understand the issue. I live in NJ and have 2 x 2021 W-2's, one from a job in NJ and one from NY. Both W-2's were automatically uploaded into TurboTax: one shows the state as NJ, the other as NY. However, TurboTax only prepared a NJ return + the federal and nothing else. I assumed everything was OK and that NJ would see my NY W-2, but the 1040 (NJ part) doesn't show my NY income and NY state tax paid (+ city taxes). The underpayment claim from NJ almost exactly matches the NY state tax I paid per my NY W-2. The error may be on my side in preparing the return, and surprised TurboTax didn't catch it.
Is this the correct path forward:
(1) File a NY nonresident income tax return
(2) File a Schedule NJ-COJ (Credit for Income or Wages Paid to Other Jurisdictions)
(3) File a NJ-1040X (NJ Amended Income Tax Return)
Can I do all of this via TurboTax, or should I work directly with NY and NJ tax offices?
Thanks in advance for any help / suggestions.
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@david_njwrote:
"Is this the correct path forward:
(1) File a NY nonresident income tax return
(2) File a Schedule NJ-COJ (Credit for Income or Wages Paid to Other Jurisdictions)
(3) File a NJ-1040X (NJ Amended Income Tax Return)"
Yes, that's correct. In the Personal Info section of TT, be sure you indicate that you had "Other State Income" from NY. This will prompt the program to produce the NY non-resident return. I suspect you forgot to do this when you filed your original return.
Complete the non-resident NY return before you do the amended NJ return, so that the program can correctly calculate and apply the "other state credit."
Double check both returns for accuracy before you submit them.