remote work at home

[doremi33]

I got W-2 form from NJ company and my home is in NYC.  If I work 90% of time remote from home to NJ, then how to I submit the non-resident state and home state.  I don't have a physical office in NJ.  I am filing the non-resident on NJ and regular form on NY.  How I allocate the income for NJ and income on NY?  On the Turbotax, does the program automatic calculate the tax credit from one state to other state (avoid the double tax)?

[DianeW777]

Yes, TurboTax will automatically calculate the other state tax credit if you complete the nonresident state return first, as a rule. If you did complete them in a different order you can use the 'Preview' to see the numbers on your nonresident state return once completed. Keep in mind you are looking for 'total tax' not refund or balance due.

• Does New Jersey have its own Convenience of the Employer Rule? NJ FAQs Convenience of Employer
  New Jersey does not have its own Convenience of the Employer Rule. However, P.L.2023, c.125 was enacted on July 21, 2023, to provide that this State will apply another state’s Convenience of the Employer Rule on nonresidents, which would be the same as the one in the nonresident’s home state. For example, compensation earned by a telecommuting New York resident working for a New Jersey employer will be deemed New Jersey source income by applying New York’s Convenience of the Employer Rule.

State Returns - Your resident state requires you to report all worldwide income. Assume both states require income tax returns to be filed: 

1. Report the income on each state return that is from the nonresident state
2. Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

In most cases complete your nonresident state first.

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

1. Select Tax Tools
2. On the drop-down select Tools
3. On the pop-up menu titled “Tools Center”, select View Tax Summary 
4. On the left sidebar, select Preview my 1040 

For TurboTax Desktop, change to 'Forms' and review the forms