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.

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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?

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.

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