Solved: Speaking fees of \$1500 in NJ (non-resident), Income Tax = \$5215; Non-Res Adjust. to Income Tax = \$5164; NJ Tax Owed = \$51. Where do these numbers come from and why \$5215?

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# Speaking fees of \$1500 in NJ (non-resident), Income Tax = \$5215; Non-Res Adjust. to Income Tax = \$5164; NJ Tax Owed = \$51. Where do these numbers come from and why \$5215?

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## Speaking fees of \$1500 in NJ (non-resident), Income Tax = \$5215; Non-Res Adjust. to Income Tax = \$5164; NJ Tax Owed = \$51. Where do these numbers come from and why \$5215?

NJ will calculate what your tax would be on all your income as if you were a resident.  Then they will prorate the amount of NJ tax to the percentage of income you actually earn in NJ.

So if your income from all sources is \$10,000 but your NJ source income is \$8,000, NJ will calculate the NJ state tax on \$10,000 then multiply the total state taxes generated by 80% (\$8,000/\$10,000). So even though you all your income is being reported on your NJ state tax return, you are only being taxed on the NJ source portion of your total income.