I live in NJ and work in NY. What if I did NJ first instead of NY?

[cc11jimmy]

I read other responses that if I live in NJ and work in NY, I should do my NY (nonresident) return first before move on to NJ. However, I have done NJ first, then NY. What do I need to do fix it? Should I delete NJ return and redo it? Thank you.

@BillM223 @TomD8 @JotikaT2 @CatinaT1 @rjs @Anonymous_ @SusanY1 @DanielV01 

[AnnetteB6]

You should be fine if you go back through your NJ return to be sure that the 'credit for taxes paid to another state' has been calculated correctly.  There should be an option to just go over NJ again without deleting it entirely.

The credit for taxes paid to the non-resident state is the primary reason for doing the non-resident return first.  The non-resident tax can be calculated and then carried to the resident return for that credit.  

@cc11jimmy

[cc11jimmy]

Thank you.  had a typo in the original post. I live in NJ but work in NY. Post title is fine but content had a typo. 

How do i know if that 'credit for taxes paid to another state' is correct? The number seems to be different than NY Tax amount (understand it is not the withholding amount".

Is there is an easy way to delete NJ state rather than manually delete each form with in it? If I go down that path, is it easy to add all forms back? I think state return did not take me too long to complete so redo it is not end of the word, if I can't confirm the 'credit for taxes paid to another state' is correct. 

Thank you.

@AnnetteB6 

[TomD8]

A complete redo is needed.  In order for the “other state credit” to be calculated and applied correctly, the non-resident state return MUST be completed before the home state return is done.  Otherwise both returns will have errors.

[AnnetteB6]

Here are some instructions for deleting a state return.  Select the article that applies depending on which platform of TurboTax you are using.

How do I delete my state return in TurboTax Online?

How do I clear my state return in TurboTax for Windows software?

@cc11jimmy

[rjs · Accepted solution]

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@cc11jimmy wrote:

How do i know if that 'credit for taxes paid to another state' is correct? The number seems to be different than NY Tax amount (understand it is not the withholding amount".  

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The credit is not supposed to be equal to your total NY tax, and probably will not be, because NY tax rates are higher than NJ. They call it "credit for income taxes paid to other jurisdictions," but when New York is the other state it's not really a credit for the New York tax. The credit eliminates the New Jersey tax on the income that was taxed by New York, but you still pay the full New York tax. That's because the New York tax rates are higher than the New Jersey rates.

The following is from New Jersey Publication GIT-3W (page 2).

"This credit minimizes double taxation of income that is already taxed by other jurisdictions. Though the credit reduces your New Jersey Income Tax, you are not necessarily entitled to a dollar-for-dollar credit for the total amount of taxes paid to the other jurisdiction. The credit represents the amount of New Jersey Income Tax that you would have paid had the income been earned in New Jersey, or the amount of tax actually paid to the other jurisdiction, whichever is less."

For more details about the credit, you can download Bulletin GIT-3W from the following link.

GIT-3W, Credit for Income Taxes Paid to Other Jurisdictions (Wage Income)

It's not necessary to delete and redo the New Jersey return. (There's no harm in doing that. It's just extra work.) Just go back to the New Jersey return and click the Update button for Taxes and Credits. Go through the Property Tax Deduction or Credit again. When you get to "Credit for Taxes Paid to Another State" click Work on Credit.