Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

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

cancel
Showing results for 
Search instead for 
Did you mean: 
greg-emanuele
New Member

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?

 
1 Best answer

Accepted Solutions
KarenJ
Intuit Alumni

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.

View solution in original post

1 Reply
KarenJ
Intuit Alumni

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.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v