Does NYC 1127 tax payment offsets NJ tax liability?

[SreenuPrabhaGMAl]

I live in NJ state and work for NYC. employer gave W-2 form, NYC 1127 form, total two forms. Need to file 1)Federal, 2)NY state IT-203(non-resident), 3) NYC 1127, 4) NJ-1040.

Q: Can I add two COJs (Credit for Other Jurisdiction) to offset NJ state tax liability?

(one for NY state tax COJ, another for NYC 1127.2 tax COJ)

NYC 1127 is a Condition of Employment tax bill, and form states "NYC 1127.2 Wage and Tax statement" and W-2 form, NYC 1127 has two separate tax withholding amounts. Actually, W-2 box 20A has NYC entry but withholding amount is in NYC1127. Tax situation is "standard deduction".

Can NYC Section 1127 payments, as a condition of my employment with NYC, be claimed as an employee e... 

[AmyC]

1. Yes, both .NJ Division of Taxation - Income Tax - Credit for Taxes Paid to Other Jurisdictions states: Your credit cannot be more than the amount you would have paid if you earned the income in New Jersey....Enter on your New Jersey return the total amount of credit from your Schedule NJ-COJ(s). You must also enter on the return a two-digit jurisdiction code  for the jurisdiction(s) in which you paid tax.

Federal tax, state tax and city tax are 3 different kinds of tax. Most states only allow other state credit. NJ does allow city credit. You can use code 53.

2. As for the link for employee expenses on the federal, the post was actually made in 2018 and moved to our new platform in 2019 so the dates are off. The federal government only allows employee expenses for a select few for 2019-2025. See Here’s who qualifies for the employee business expense deduction  If you qualify, then you can deduct.

[SreenuPrabhaGMAl]

Thank you for response. But code 99 is correct, not 53. Here claiming for two COJs "Multiple Jurisdictions" not for one but Two - 1) for NY state, 2) second with NYC city local govt.  

Q: Can I claim two COJs (Credit for Other Jurisdiction) to offset NJ state tax liability?

Please provide more insight on how to justify NJ division of taxation with a better advise.

NJ tax dept. issued tax audit for a prior year. But in the past, 5 years back NJ Division of Taxation employee personally advised to use 99 code to offset NJ tax liability for these two taxes (1.NY state tax, 2.Local govt. NYC 1127 tax) and it worked, but now issued audit for 2017 year. How to justify?

NJ state not considering "NYC local govt. tax" paid by tax payer and saying it's "Condition of employment" but NYC govt. issues "N.Y.C. 1127.2 WAGE AND TAX STATEMENT" to employee and clearly says as tax along with W-2 form, employee gets two forms (W-2 + NYC 1127) in total from employer.

Please review and provide suggestion with a guidance to justify NJ division of taxation.

Note: We don't need to enter code, Turbotax automatically adds 99 code to NJ-1040 form at line 41a when we add multiple jurisdictions (i.e. two jurisdictions).