Much higher income tax for New Jersey than last year- why?

[xiaoli61]

Hi everyone, 

I am currently calculating my 2020 taxes using TurboTax Business, and I noticed that the state of New Jersey is taxing me much more for my income than it charged last year- despite my income being nearly the same. I was wondering if anyone could tell me why that is, and how to fix that if possible? 

[DanielV01 · Accepted solution]

I'm not familiar with New Jersey Business returns or tax; however, on New Jersey personal returns, income that is reported to both New Jersey and another state will be doubled-up, creating much higher tax amounts.  My recommendation is to double-check your entries, and if any income is reported to both New Jersey and another state, to make sure that the correct boxes have been checked to remove out-of-state income so no double-up occurs.  

Also, double-check New Jersey Business taxation laws to be sure that no other tax increases or similar have occurred that explains the difference you are seeing.

[SweetieJean]

Are you using TT Business for an S Corp, C Corp or Partnership?

[xiaoli61]

no. I am only for W2, self employ and leasing.

[xiaoli61]

Thanks for your reply and advice. It is very helpful.

I checked the import data for W2 and my state tax hold was put in two parts- one for normal salary income tax  hold, and another for FLI. Since it takes two lines in box 17, the income for the line of my FLI was open, my state income duplicated, as you mentioned. Once I added 0.00 to the second line for FLI, the state tax is back to normal number.