I am a part-year resident of NJ but it is showing me as a full-year resident and taxing me on my entire year's earnings. How do I change this?

[pambooser]

I was active duty military until April 2018, with Texas home of record (no state income tax).  I then joined the NJ National Guard, but was a resident of Oklahoma from April through November.  I did not become a resident of NJ until Dec 1, 2018.  When I get to the NJ state taxes, it is showing me as a full-year resident and taxing me on my entire year's earnings (even though my W-2s differentiate which earnings were in Texas, Oklahoma, and New Jersey).  How do I change this?

[DanielV01]

You are not taxed on all of your income in New Jersey.  However, New Jersey pretends that all of your income is taxable in New Jersey to determine New Jersey tax.  After the hypothetical tax is calculated, your NJ tax is then prorated to the amount of income actually earned in New Jersey.  Your other income is not taxed in New Jersey, but it is factored in to report NJ tax.  The NJ return  makes it look like your other income is taxed there, but it isn't.

[pambooser]

Thanks!  So at what point does it actually calculate the prorated amount?  I got to what I thought was the end of the NJ part of Turbo Tax and it said my NJ tax owed is $1500; the portion of my income that was while I was a NJ resident was only around $8000.

[DanielV01]

Go back through your NJ return.  You may have to do a "remove income" procedure because it looks like NJ is including income it should not be.  On the NJ return, you will see a screen titled About Your W-2 State Wage Information.  Because of state programming requirements, TurboTax includes both income lines as part of the NJ income.  The next screen is titled Let's Confirm Your Taxable State Wages from (Employer).  Click on all boxes that are not NJ so that the income from other states are not included as taxable on the NJ return