IT-112-R TP should not be greater than the tax imposed by another state

[icarus1]

I had 2 sources of NJ income totaling 4,207.6 taxes paid.  Having 4208 in line 24a generates the above error and won't let me e-file.  Lowering 4208 to 4150, for example, won't fix the issue.  How can I resolve this?

Thanks

[Cynthiad66]

To fix your error, please follow the instructions below:

1. Open your return.
2. Click on State on the left-hand side.
3. Click Edit next to New York.
4. On the page, You Just Finish Your New York Return, click Start or Update next to Credits and Other Taxes.
5. On the page, Take a look at New York credits and taxes, click Start or Update next to Taxes Paid to Another State.
6. Click Edit next to NJ.
7. On the screen Enter New Jersey Information, erase $437 and enter total tax of $385.
8. Continue through your return.

If you decrease the amount of taxes paid to another state, your total credit will go down. This increases your New York taxes. 

[icarus1]

Thank you, but I don't see an amount of 437 under the NJ state taxes paid section.

[AmyC]

You can't claim a credit (line 24) larger than your tax liability (line 25).  Form IT-112R Line 24a ask for the tax liability from the other state. Line 25 is NY tax and the program works through the credit calculation. Leave the income at the amount being taxed by both states.

Instructions for Form IT-112-R New York State Resident Credit

Follow these steps to locate your tax liability for "state 1" and enter in NY

1. Log into your return
2. Select state taxes
3. Enter the non-resident "state 1"  for which you need the liability
4. On the left, go to Tax Tools
5. Select Tools
6. Select View Tax Summary
7. You will see Summary of your "State 1" Return at the top.
8. Locate the line that says Total Tax
9. Write that number down.
10. Return to your resident  NY return and enter that number where it asks for the liability for "state 1".
11. Some states tax income the federal does not. For example: NJ taxes money you set aside in your retirement plan. Each state has different rules. 

You get credit for the lower state tax on the lowest taxable amount.

• Each state calculates taxable income differently. 
• Each state has its own tax rate/ system.
• You get the lowest of both categories as a tax credit.