I live in NJ and work in PA. On my W2 I have tax withholding from a local PA municipality (Bensalem).
In my income section, I entered the following details from W2 for local taxes.
Box 18(Local Wages, tips, etc) = 6000
Box 19 (Local income tax) = 60
Box 20 (Locality name) = 090101
I should get credit for taxes paid to Bensalem (in PA) on my NJ tax return. In my NJ tax return, I added Bensalem for the taxes paid outside of NJ. In the next step, Turbotax is asking me about Money I earned in Bensalem, with the following two text boxes on the screen.
Double-taxed income: ________
Tax paid to Bensalem: ________
1) What should I enter in these boxes? Amount from box 18 and box 19 respectively? If Yes, Why is it asking me again instead of calculating it based on what I already entered in my W2 section.
Understood. Usually, Turbotax would auto-populate, but it did not in this case. So I wasn't sure if Box 18 and 19 amounts will go in these text boxes as is OR I have to do some calculations to figure out the amount. That is why I asked the question.