Tax Amount - TP should not be greater than the tax imposed by the other state.

[TGN11]

Having same issue where it says my Tax amount should not be greater than tax imposed by other state…

My token number: 1067498

[JosephS1]

From your diagnostic token I was able to see what the amount of tax listed on line 24a of Form IT-112-R and it was indeed larger than the NJ tax per your NJ Non-Resident Return. 

If you are using TurboTax Desktop, click on "Forms" at the top right corner of the screen.  Scroll down to the New York section of the forms, click on "IT-112-R" and on line 24a type in the amount of NJ tax of $2290.  That will clear the error in TurboTax Desktop.

If you are using TurboTax Online, please follow these steps:

1. Click on State Taxes, then Your State Returns
2. Click on the "Edit" at your New York Return, then Continue
3. Click on "Credits and other taxes", then answer the question that follows
4. Click on "Update" under Credit for Taxes Paid at Taxes paid to Another State
5.  You should see NJ and click on edit
6. Answer the remaining questions until you see the screen for Tax computed on your NJ return and type in 2290
7. After answering the questions that follow you should have the correct taxes paid credit flowing to your NY return.

@TGN11 

[shirarobin]

I'm having this issue as well. Can you please help me out as well and let me know the correct figure I should input--and confirm where I should input it--to correct the error?

My token is 1097799

Thanks!

[CarissaM]

It would be best to give us a call, so we can better assist you @shirarobin 

[Mpb70350]

Having this issue as well. My token is 262913

[fanfare]

submissions are accepted only after invitation.

[AmyC]

Example: State 1 tax liability of $3,000. State 2 - resident state - tax liability of $4,400. The most credit State B will give is $3,000 and only if the taxable income is as much or more. States compute taxable income differently.

Follow these steps:

1. To locate your tax liability for "state 1" 
2. Log into your return
3. Select state taxes
4. Enter the non-resident "state 1"  for which you need the liability
5. On the left, go to Tax Tools
6. Select Tools
7. Select View Tax Summary
8. You will see Summary of your "State 1" Return at the top.
9. Locate the line that says Total Tax
10. Write that number down.
11. Return to your resident "state 2" return and enter that number where it asks for the liability for "state 1".
12. Some states tax income the federal does not. For example: NJ taxes money you set aside in your retirement plan. Each state has different rules. 

@Mpb70350 

[kb115_]

Hi! Regarding "Summary of Taxes Paid to Other States" for a (NJ) resident return, I was wondering if you'd know of the possibility of Turbo Tax miscalculating the "Double-taxed income" amount after completing the (MA) nonresident return?

The "Tax Paid" amount it transferred over was correct, however the Double-taxed Income amount it transferred over seems odd, and I wonder if I need to correct it.

It's an amount that's not "Total 5% income" nor "Taxable 5% income" on the Summary of Taxes (MA non-resident for me).

Instead. when I preview the PDF of my taxes, I see that that the amount Turbo Tax automatically calculated as Double-taxed Income is from Line 3 from 2023 Schedule NTS-L-NRPY, which was Total 5.0% Income minus an Adjustment to income (which was Line 10 of 2023 Schedule Y ---> Student Loan Interest).

I was under the impression that Double-taxed income was supposed to be the "Taxable 5% income" amount?

[AmyC]

NJ allows a deduction from income for student loans. Therefore, the subtraction should be made from MA income to correctly calculate the NJ income. 

See NJ Division of Taxation - New Jersey College Affordability Act

@kb115_ 

[kb115_]

Thank you! So in that case is Student Loan Interest the ONLY subtraction that should be made on MA income to calculate the double-taxed NJ income? What about other deductions like the MA portion of Social Security + Medicare paid?

[DawnC]

There are no state portions of FICA (ss and medicare).    Double-taxed income is the income both states are taxing you on.  

[kb115_]

@DawnC 

But there are state portions? There's a section when filing MA returns asking for the non-MA portion of the amount paid during 2023 to Social Security (FICA), Railroad, Medicare, U.S. or MA Retirement.

The non-MA portion was auto-calculated by Turbo Tax, and when I do the math to check what the MA portion therefor was ... it's actually an amount less than presented on my W2. But I guess there was some calculations done behind the scenes by Turbo tax to calculate the exact amounts. Like here. 

[AmyC]

Let's try something simpler with you. If you are MA resident, then everything is MA income except any wages you earned outside. If you are a part year resident, then you need to start dividing things up between the time in the states.

If a full year resident, you should be able to go by the number on the tax return to the other state. Follow these steps to locate your tax liability for "non-MA"

1. Log into your return
2. Select state taxes
3. Enter the non-resident "state 1"  for which you need the liability
4. On the left, go to Tax Tools
5. Select Tools
6. Select View Tax Summary
7. You will see Summary of your "State 1" Return at the top.
8. Locate the line that says Taxable Income
9. Locate the line that says Total Tax
10. Note those numbers

Some states tax income the federal does not. For example: NJ taxes money you set aside in your retirement plan. Each state has different rules. 

@kb115_ 

[kb115_]

So Taxable Income in MA's Tax Summary  (I'm a NJ resident) is what I'd edit as the Double-Taxed Income for NJ?

[AmyC]

Yes!!! Okay, I was not understanding your situation. Yes, the income that shows as taxable income on the MA return is the income being double taxed. It could be higher or lower than every other number.