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Level 2
posted Jan 25, 2021 6:31:45 AM

Rent move from NYC to NJ

Hello:

In 2020 I moved from NYC to New Jersey in February, and i received W2 with all tax to NY.

when filing tax form, I was told to file part-resident to both NYC and NJ, and I have very little refund from NY state, and have to pay full NJ tax.

So I selected "I double paid both state tax" and then the tax due becomes about 12 USD in NJ state. After doing that NJ + NY tax looks more reasonable comparing to my 2019 tax return. Because my salary and employer didn't change.

Question is : Do I need to select that "double tax payment" ? In W2 I paid almost same amount as 2019 but I only lived in NY for less than 2 months, and it barely return any tax, if I don't select that I'll have to pay another full amount NJ tax.

Thanks a lot

0 4 508
4 Replies
Employee Tax Expert
Jan 25, 2021 7:30:10 AM

Essentially, yes, you would need to indicate that you paid taxes in both states to ensure you receive a credit for the taxes paid in New York on your New Jersey return.

 

If you follow/review the steps below, your return will calculate the credit in New Jersey for any taxes paid in New York on the same income.  

 

You will be able to claim a credit in New Jersey for any taxes paid in New York as it sounds like all of your income had withholdings in New York and not New Jersey.  This credit will offset the amount of income taxed in New Jersey while you were a resident of New Jersey.

 

To ensure your return is calculated correctly, you will need to confirm a few items: 

 

In the My Info section of TurboTax, confirm that you have entered the correct state information: 

  1. Click Edit to the right of your name 
  2. Confirm your input under #2 Tell us the state(s) you lived in
  3. Go back to the personal information section, and verify the mailing address and "Other state income" section.  Be sure to answer yes to the question asking "Did you make money in any other states?". 

 

Please note the following as it will affect the calculations: 

 

When you are preparing more than one state return, make sure you prepare the part-year resident New York and state tax returns first.   Be sure to answer the questions correctly to ensure only income sourced to that state specifically are reported.

 

Once you have entered all of the nonresident state information, then start your New Jersey part-year state tax return.  This will ensure you receive any credits for taxes on income which may have been taxed in New York. 

 

Proceed through the screens in your New Jersey return until you see Take a look at New Jersey credits and taxes. You should see Taxes Paid to Another State under the Credit for Taxes paid.   You can edit your information here if needed but the taxes paid to the other state should be listed in this section.

Level 2
Feb 4, 2021 12:41:04 PM

Hello:

 

Thank you so much and apologize for late follow up reply, it was a busy week.

In step 3 you said I need to check "yes" to I make money in other state but the "yes" choice is :

"Yes, I made money in a state other than New Jersey or New York"

Which is not the case, I only make money in New York..So it is a bit confusing,

 

thanks.

Best,

Level 2
Feb 4, 2021 12:41:36 PM

Hello:

 

Thank you so much and apologize for late follow up reply, it was a busy week.

In step 3 you said I need to check "yes" to I make money in other state but the "yes" choice is :

"Yes, I made money in a state other than New Jersey or New York"

Which is not the case, I only make money in New York..So it is a bit confusing,

 

thanks.

Best,

Expert Alumni
Feb 4, 2021 1:43:22 PM

Say No to Did you make money in any other states? TurboTax knows you made money in New York because you told TurboTax that you moved from New York City to New Jersey.

 

The purpose of this question is to generate state tax returns. In the State section you should see New York and New Jersey returns. If not, select Add Another State,