Why doesn't your program calculate the credit for income tax paid to other jurisdictions properly? My 401K amt was not included to calculate this for 2019 NJ return.

[Anonymous]

not sure what you are talking about.  any state taxes paid on your 401K distribution would be an itemized deduction on Schedule A . the deduction for state taxes is limited to $10000

under a SCOTUS ruling, your pension can only be taxed by the resident state.

here's what happened. Taxpayer earned a pension while working for the State of California.   retired to another state. pension payments were made to taxpayer while residing in the other state. Cal tried to taxed him. SCOTUS said no way. 

problems do arise if no change of address is filed with the pension administrator.  they use the address on file and would send a copy of the 1099-R to that state which then thinks you are a resident and sends you a bill.

if you are a part-year resident of two states the pension needs to be split based on when received and what is your resident state at the time.  

if this is not your situation you'll need to clarify what happened. 

[rjs]

What do you mean by "401K amt"? Are you talking about a 401(k) contribution amount that was deducted from your pay (shown with code D in box 12 of your W-2)? Or are you talking about a distribution from a 401(k) account that was reported on a Form 1099-R?

Where exactly was the 401(k) amount omitted from? It would help if you give specific form and line numbers that the 401(k) amount was omitted from, where you think it should have been included.

Keep in mind that the calculation of the credit for income tax paid to another jurisdiction is based on only "Income actually taxed by both New Jersey and the other jurisdiction." "Income must be taxed by both New Jersey and the other jurisdiction to be included on Schedule NJ-COJ." You might find New Jersey Publication GIT-3W helpful in understanding the details of how the calculation is done. The preceding quotations are from that publication. You can download it from the following link.

GIT-3W Credit for Income Taxes Paid to Other Jurisdictions (Wage Income)