Non Resident Sale of Home

[ldaflac]

I am trying to file a NJ non resident form to report my net gains and the 2% tax I paid at settlement.  I paid for an extra state return but the NJ form pulls all of the info from my federal return.  I don't want all of that info to go on the NJ form as I am only reporting a home sale.  Help please!   Thank you,.

[MaryK4]

For the New Jersey nonresident return, you must include all income to determine the tax, then the percentage of New Jersey income is applied to the tax to determine the tax due.

[ldaflac]

Thank you.  Must I even file the NJ return if I paid the 2% non resident tax at closing?

[MaryK4]

Yes, you will have to file the tax return to report the sale.  You will need to enter the 2% tax you paid as Estimated Tax Payments- State estimated taxes for 2024.  TurboTax will calculate if you owe additional tax or get a refund. @Idaflac

[ldaflac]

Thanks so much.  I’m really confused as to why NJ would need to know my income, investment info, etc, when none of that was earned in NJ.  Can I just complete the section or the sale of the house.   THANKS AGAIN.  

[DawnC]

Some states separate the income and tax only their state's income. Or, a state may tax all of the income as if you were a resident.  Then, it allocates the tax based on in-state sources as a percentage of all sources.

TurboTax will add all of your tax information to the nonresident NJ return.   When you go through the return, leave all the allocation screens blank except for the home sale income and tax.   You will allocate only those items to NJ and you can click through the rest of it.