turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

GGGGary554
Returning Member

Refund of NJ "exit" tax (NJ capital gains tax)?

How do I go about recovering NJ capital gains tax paid when I sold my house in NJ (my primary residence) and moved out of state (to PA)?  At the closing of my house sale in NJ I had to pay 2% of the total sale price to the State of NJ (estimated capital gains tax), with the understanding that , if I qualified , I could recover some or all of that payment by filing a NJ non-resident return.  One of those qualifications is if I met the criteria for the Federal section 121 exclusion, which I did.  The problem is that nowhere in the NJ return was there a place for me to enter estimated taxes I had already paid up front.  The only mention of the property sale in the NJ interview is in the "Disposition of Property" field - one line has the sale of the property with the actual capital gain (pulled from the Federal interview) and the next line says 'Section 121 exclusion' with the same capital gain but with a minus (-) in front of it, effectively cancelling out the capital gain and saying I owe no taxes for the house sale.  But again - there is nowhere in the interview for me to enter estimated taxes already paid, so I can recover what I already paid.

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies

Refund of NJ "exit" tax (NJ capital gains tax)?

At closing you should have received an NJ Estimated Tax receipt for the amount from your attorney.

A lot of attorneys don't know how to handle this correctly.

In any case you would file the amount as an NJ estimated tax payment Line  56, since you paid it.

Refund of NJ "exit" tax (NJ capital gains tax)?

you might want to discuss with your attorney before filing.

ErnieS0
Expert Alumni

Refund of NJ "exit" tax (NJ capital gains tax)?

Enter your New jersey withholding in Deductions & Credits. The amount will transfer to your NJ nonresident income tax return.

 

Here's how to do it:

  1. Type estimated tax payments in Search in the upper right
  2. Select Jump to estimated tax payments
  3. Scroll down to Other Income Taxes Paid in 2021
  4. Start Withholding not already entered on a W-2 or 1099
  5. On Tell us about any tax withholding that you haven't entered yet select New Jersey in the dropdown under State withholdings and enter the amount

The post includes a link to an article about the exit tax: Where do I enter the exit tax paid to NJ when I sold my rental condo in 2016. I lived in that condo...

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question