Hi, I work in NY (W2) and live in NJ. How to claim state tax credit from turbotax? It seems I owe lots of money to NJ..

[xmasbaby0]

You have two state returns to prepare.  Prepare the NON-resident return first---the one for the state you work in.  Then prepare the return for the state you live in.

[sarahwang688]

Thanks for the reply. Im a first-time turbotax user. I wonder how to prepare "NON-resident return first"? Does that mean I need to submit federal and non resident return first? and then in the second submission, I'll file resident return?

[xmasbaby0]

Not talking about when you e-file them.  Talking about the order in which you fill out the software programs for them.   Do federal first.  Then prepare a non-resident state return for New York.   Then.....prepare a resident state return for New Jersey.   You can e-file all of them at the same time.   

When you enter your information in My Info for your federal return, it is going to ask where you lived in 2023.  It will also ask you if you made money in any other state.  You are going to say yes to that and enter that you worked/made money in NY.   

https://ttlc.intuit.com/questions/2895920-why-would-i-have-to-file-a-nonresident-state-return

[TomD8]

Just to clarify: your home state of NJ will give you a credit for the taxes you pay to NY.   That's to avoid double taxation, which federal law prohibits. The only way for the TurboTax program to calculate and apply the credit is for you to complete the non-resident NY return first.   That way the program will "know" your NY tax info in order to apply it to your NJ return.

[sarahwang688]

Got it. Thanks! 

If I owe tax to federal and NJ, and will receive tax refund from NY. Can I wait until I get the NY refund and then pay tax to federal and NJ? If so, approximately how many days it will take to get NY refund after filing, and what is the deadline for paying tax to federal and NJ? Thanks again!

[MayaD]

Yes, you can wait until you receive your NY refund to pay the Federal and NJ amount due as long as you pay both before the due date which is April 15th 2024. 

 For NY refund, each return is different. A simple return will process faster, but returns requesting certain credits that are an attractive target for fraud will likely require additional review by one or more department-review systems.

For more information and to check the status of your NY refund go to: Refund Status