I live in NY and work in NJ. In past years, I got a credit on my NY state tax return that was exactly equal to the tax liability on my NJ non-resident return. This year, the credit on my NY return is smaller than the amount of NJ tax paid, and I am trying to figure out why.
The problem first appears on my NY Form IT-112-R, where the credit is calculated. Line 24(a) asks for the amount of tax paid to the other state by the taxpayer (me). The number listed there is smaller than the amount of tax on my NJ return. I can't figure out where this smaller number comes from.
I am using TurboTax Premium online. I used the print center to download a draft of the return with all worksheets. On the "IT-112-R (NJ) Resident Tax Credit -- Smart Worksheet", the number listed for "Amount of tax imposed by the other state" is correct. I could not find any worksheet that shows how the smaller number on line 24(a) of the Ir-112-R is calculated. How can I determine where this number comes from?
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This is coming from IT-112-NR. On the smart worksheet, you will see the full amount that was transferred from the NJ return of your total taxes for NJ. But then there was an entry that is lower.
It looks like as you were walking through the NY return, when asked the question of Tax Computed on Your New Jersey Return, you entered an amount that was smaller than the amount of total tax you actually paid. In forms mode (in the desktop version), this is in blue which generally indicates user entry. (Forms mode to see calculations is not available in the online version.) If that number is removed it goes back to the full amount and your total NY credit is the full amount you paid to NJ. Which then drops down your NY taxes due.
To get to the entry of the lower amount, select the following:
Update: My token is 1343843.
This is coming from IT-112-NR. On the smart worksheet, you will see the full amount that was transferred from the NJ return of your total taxes for NJ. But then there was an entry that is lower.
It looks like as you were walking through the NY return, when asked the question of Tax Computed on Your New Jersey Return, you entered an amount that was smaller than the amount of total tax you actually paid. In forms mode (in the desktop version), this is in blue which generally indicates user entry. (Forms mode to see calculations is not available in the online version.) If that number is removed it goes back to the full amount and your total NY credit is the full amount you paid to NJ. Which then drops down your NY taxes due.
To get to the entry of the lower amount, select the following:
This solved it. There is a screen that asks how much tax I paid to NJ and how much was paid on my behalf. The incorrect number was entered on the first line. I removed it, and everything now calculates correctly.
Thanks so much for your help!
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