Multiple states income and exclusions

[dpratt1]

Trying to figure out how to not include Sch C income on the NJ return when they live in NY and the business is in NY. I have tried taking the full income as an exclusion to NJ but it just increases the balance due on NY. Do I take the exclusion in NJ and then go put the credit in NY manually?

[MaryK4]

Self-employment income is not an exclusion on the New Jersey Tax return.  For nonresidents, New Jersey Income Tax liability is based on the percentage of their total income that comes from New Jersey.  As a nonresident, you must calculate your tax on income from all sources as if you were a resident, and then prorate your tax based on your New Jersey source percentage.  See Part-Year Residents and Nonresidents - NJ.gov.