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dluchten
New Member

Work in NY, live in NJ: Adjusted credit for taxes paid to NY, now I owe NJ over $3,000?

I work in NY, and live in NJ. I used Turbotax to file my 2017 taxes (federal and state). Now (3 years later!), I get a letter from NJ dept of treasury that I owe them over $3,000! The letter says that "we adjusted the credit for income taxes paid to New York"... One of the reasons that I used Turbotax is to avoid these complicated tax filings... What could have gone wrong? 

 

Thanks for any help! 

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2 Replies

Work in NY, live in NJ: Adjusted credit for taxes paid to NY, now I owe NJ over $3,000?

Your credit for income taxes paid to New York cannot exceed your NJ income tax due.

Work in NY, live in NJ: Adjusted credit for taxes paid to NY, now I owe NJ over $3,000?

Subsequent to filing your NJ return, did you amend your NY return, reducing the tax assessed? Or has the state of New York changed your return in any way?

 

Normally, someone in your position should enter your New York data first, then your New Jersey data, to ensure that the NY state tax is properly credited in NJ. Did you do that? Doublecheck your NY return and make sure that the tax assessed in NY matches the size of the credit in NJ.

 

Unfortunately, we in the Community cannot see your return, so we are dependent on you to tell us what else has changed on your returns.

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