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posted Oct 14, 2024 1:00:04 PM

NJ Tax Credit Calculation for NY Income

Hello, I live in NJ and work in NY. I am a partner at a law firm and receive guaranteed payments which majority of the income is sourced in NY.  My wife works in NY and is a W2 employee. When calculating Schedule NJ-COJ can I combine the portion of my  NY K1 income and my wife's W2 income to get a total income for NY or line 1 on the schedule? 

0 2 4900
2 Replies
Level 15
Oct 14, 2024 1:59:14 PM

Level 15
Oct 15, 2024 7:20:41 AM

From page 33 of the instructions for Form NJ-COJ:

 

"When claiming a credit for taxes paid to New York, the amount on line 1 must reflect the “New York State Amount” actually taxed by New York from the New York IT-203."

https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf#page=33

 

With TurboTax be sure to complete your non-resident NY tax return before you do your home state NJ tax return.  The problem should then calculate the "other jurisdiction tax credit" for you.