I moved from NJ to NYC in the middle of last year while continuing to work in the same job in New York. My employer issued a single W-2 and have two different Line 15 for NY and NJ State separately, where NY State wages ( Box 16) is the same as the Box 1 and NJ State wages (Box 16) is about half of the Box 1. Am I eligible for any credit when completing part-year resident NJ tax form? if yes, How can I claim the double tax in TT?
Yes, you will be entitled to a credit. When you file your state returns, you will want to start by filing the New York return first. You will be filing a part-year return for New York, but you will pay attention to the questions that ask about how much income you earned as a nonresident. That would be the amount you earned while still living in NJ. NY taxes all of your income: part as a resident, and part as a nonresident.
Then you prepare the NJ part-year resident return. Early in that return, you will be asked if you need to exempt income for the NJ return. Exempt the NY income. Because of reporting and programming requirements, your employer reports your separate state lines with this information, and TurboTax will add both the NY and NJ lines to calculate NJ tax, leading to a much higher tax due. But by checking the box in the screenshot below, you will remove the reduntantly reported income. Later, you are asked about double-taxed income. If you have prepared the NY return correctly, TurboTax will have calculated the credit for taxes paid to NY on your NJ return, reducing and possibly eliminating any tax owed.
See the screenshot below that shows the key screen entry on the NJ return:
Thank you. Yes, I was working on this "Doube-Tax Credit" page as well. After removing the NY Tax as your screenshot, however, it still asks me to work on a page of "Tell us about the money you earned in New York". Two blanks are required to be entered here, 1) "Double-Tax income while a resident of New Jersey" and 2) "Tax paid to New York while a resident of New Jersey". How should i calculate them or where can i get them? There is a note on the page saying: "do not enter the income amount and taxes withheld from your W-2. We need the actual numbers from your other state's tax return."
If the information is pre-filled, you leave it. Otherwise, you have to prorate your NY tax. What you do is first take your total NY tax withheld and subtract the amount of refund (or add the additional amount of tax you owe) to that figure. You then figure out how much of the income was earned in NJ (NJ income divided by total income). Multiply this percentage by the overall NY tax above. This is the amount of tax you paid to NY on income earned in NY while living in NJ. (Income in box will match what you earned in NJ)
We are in a similar situation. We filed appropriately but are hitting a roadblock with the "County/Municipality Code" requirement in our address for the NJ state filing. It is pulling our current New York address, so we put in the code for Kings County, but it keeps telling us this is incorrect and needs to be fixed. Do we need to input the former New Jersey address -- and how do we do that?