I currently live in Washington State (since 2016). I originally filed my 2022 Federal Tax return and a 2022 Non-Resident New Jersey Tax return at the end of February 2023. In the middle of March 2023, I received a 1099-Misc from Merrill Lynch for $28,262. I filed an amended Federal Tax Return and included the additional tax payment due for this 1099-Misc. While I didn’t think this 1099-Misc should affect my Non-Resident NJ return, Turbotax calculated that I owed $54 to New Jersey now. I didn’t to delve deeper into why as it wasn’t a big amount, so I just filed the Turbotax prepared amended Non-Resident NJ return through the mail with a check for $54.
My 2022 New Jersey earnings (of $25,073) reflects deferred compensation (supplemental savings payment installment) from a New Jersey employer I used to work for prior to 2016. In the original 2022 Non-Resident NJ filing, I was to receive a refund of $586 because Turbotax originally calculated that I owed $1,093 in 2022 taxes to New Jersey but my former New Jersey employer had withheld $1,679.
Eventually I received the $586 refund from New Jersey later in 2023. But then I also received a $54 refund from New Jersey. Okay, sounds good, I thought initially they reversed what the amended return said I owed. But then in September 2023, I received a underpayment Billing Notice from the State of New Jersey taxation, indicating that I owe $640 (which is the total of the $586 + $54 refunds) as well as $$ for late penalty and interest.
When I went back and scrutinized the Turbotax amended 2022 Non-Resident NJ return, I see that Turbotax revised the amount of NJ Taxes withheld from $1,679 (which is accurate and was in my original filing) to $1,093 and indicated that NJ taxes owed amount was changed from $1,093 to $1,147 – thus calculating I owed $54. I don’t understand why Turbotax miscalculated this with bad data. Why didn’t Turbotax accurately indicate in the amended return that there was $1,679 withheld, and that I was going to receive $586 back from NJ, and if somehow the tax liability changed for NJ due to the 1099-Misc (or just due to the timing of Turbotax revised calculations?) from $1,093 to $1,147, then I should owe them this $54 due to that. But no, Turbotax didn’t put in the correct $1,679 withholding info, and New Jersey simply used what Turbotax calculated and indicated that since my tax liability is $1,147 and my withholding was (incorrectly stated as) $1,093, then NJ should re-coup the $586 that was sent to me, and the $54 that was essentially returned to me.
I have documented this to New Jersey tax authority but they have not reviewed my case as of yet, and they still send me periodic billing statements that keep increasing due to penalties and interest. I am wondering if this is a timing issue and the Turbotax failed in their calculations because my original NJ filing was still in progress when I prepared the amended filing. What are my options to get Turbotax to review their error and help me fix this with New Jersey?
