Moved from Utah to NJ in 2014. $4,000 in Moving expenses were applied to Utah deduction instead of NJ. They now want to Audit. How can I correct this?

[SweetieJean]

Federal deductions such as moving expenses are not allowed on the New Jersey return.
Did you file part year resident returns in both states?

[madonohuesr]

Yes, I filed a part year resident return in both states.

[SweetieJean]

<a rel="nofollow" target="_blank" href="http://www.state.nj.us/treasury/taxation/njit13.shtml">http://www.state.nj.us/treasury/taxation/njit...>

[SweetieJean · Accepted solution]

You will have to pay Utah.  Moving expenses deducted on the Federal return may be deducted from the Utah portion of AGI only to the extent that they are for moving into Utah and within Utah.

https://rules.utah.gov/publicat/code/r865/r865-09i.htm

As indicated in the comment above, NJ does not have a comparable deduction.

[madonohuesr]

I used Turbo tax and filled out Federal 3903 moving expenses. Would have this been applied to Utah automatically or would I have had to enter the moving expense separately on the Utah and NJ return?

[SweetieJean]

I'm not sure, as I a just another user, but normally things like that are covered in the State interview.