Can I file both a resident and non-resident return for the state of New Jersey? What steps do I need to take in Turbo Tax to allow this to happen?

[steveLAX12]

I was active duty military with a home of record of New Jersey who has been stationed outside of NJ for many years. In past years I met the three requirements, to file as a Non-Resident.

1) I paid for and  maintained a domicile outside of NJ.

2) I did not maintain any property or home in NJ

3) I spent less than 30 days in the state.

In August, I left the military and changed my domicile back to NJ and started a new job so I am now a resident. Due to the following language out of this tax bulletin,(https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git6.pdf:(

Part-Year Resident/Part-Year Nonresident

If, as a result of a change of your domicile, you met the definition of New Jersey resident or nonresident for only part of the year, you are a resident for part of the year (part-year resident) and a nonresident for the remainder of that year (part-year nonresident).

According to the above bulletin I need to file both a Non-Resident and Resident Tax Return. However, I am unable to do so in Turbo Tax. If I try to start a Non-Resident return, Turbo Tax tries to attribute all my withholdings from my new job, giving me too large of a return. And then I cannot start another return as it says I already have started an NJ return. If I try to start a resident first I cannot remove my military pay which is not attributable to NJ, and therefore makes me pay too high of taxes.

This issue is driving me bonkers. Any help would be appreciated.

[IreneS]

I understand state returns and be tricky and frustrating! 

TurboTax will create a NJ part-year return that is acceptable to NJ.  There is no need to also create a separate nonresident return.  The instructions you referenced do not have to do with taxpayers using NJ-approved software (like TurboTax) to prepare their returns.  Just follow these steps:

1. Go back into your NJ return and continue to the screen, Other situations that may apply to you
2. Mark the box I need to verify my main form or residency selection.
3. On the next screen, click the Change Residency box.
4. On the New Jersey Main Return screen, mark the radio button for Part-year resident (Form NJ1040 OOR Form NJ-1040 and Form NJ-1040NR) and click Continue.
5. On the next screen, enter the Part-Year Resident Dates.  For the ending date enter 12/31/2018 -- this is the last date in 2018 you were a resident in NJ.  Dates in 2019 won't be accepted.
   
6. Continue through the screens to enter the amount of your NJ income.
   

[steveLAX12]

Steps 3 and 4 do not come as options within the software. I am presented with the following.


-I paid for and maintained a permanent place of residence outside of New Jersey in 2018.

 Enter State   
 
-No, I didn't pay for and maintain a permanent residence outside of New Jersey in 2018.
 
-I did not spend more than 30 days in New Jersey in 2018