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Need clarification on paid taxes allocated to resident and nonresident returns for NJ. TT Recommends I allocate more to the resident form. Is this OK? See details.

TT is recommending that I increase the amount of paid taxes to my resident form so that I end up with no refund and no balance on my nonresident return. I know the amount that I paid for the period I was a resident (from employment pay statements) - why would I increase this amount to be more than actual? SEE TT SCREENSHOT ATTACHED)

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2 Replies
MarilynG
Expert Alumni

Need clarification on paid taxes allocated to resident and nonresident returns for NJ. TT Recommends I allocate more to the resident form. Is this OK? See details.

This is New Jersey giving you this advice, since you are filing both a Resident and a Non-Resident return to the same state.

You can allocate as suggested, but you are correct that you are not required to do so.

The state of New Jersey would rather send you one refund instead of two.

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Need clarification on paid taxes allocated to resident and nonresident returns for NJ. TT Recommends I allocate more to the resident form. Is this OK? See details.

Thank you Marilyn! The way it plays out in TT, if I don’t adjust as recommended by TT i get a smaller NJ refund and pay less state tax to my new state (OR). Whereas if I make the adjustment, I get a larger NJ refund but pay more tax to OR. Either way the overall numbers come out the same but the amount going to OR seems to vary - this is what looks a but strange to me. Any thoughts?

Thanks again!
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