My W2 has NJ state tax ( only $63.9), but turbotax did not suggest to file NJ

https://www.state.nj.us/treasury/taxation/njit23.shtml I checked this

your filing status is: and your gross income from everywhere for the entire year was more than the filing threshold:

Single Married/CU partner, filing separate return	$10,000
Married/CU couple, filing joint return Head of household Qualifying widow(er)/surviving CU partner	$20,000

If your income is equal to or below the filing threshold, file a return to get a refund if:

• You had New Jersey Income Tax withheld;
• You paid New Jersey estimated taxes;
• You are eligible for a New Jersey Earned Income Tax Credit or other credit.

 

 

 

For me, My total income is above the threshold, but the "state wage" box 16 on W2 for NJ is much less than the threshold. Should I file nj?

It depends on your total income. We’d have to know how much you made in total to help you.

 

New Jersey counts your gross income from everywhere for the entire year for your filing threshold. 

 

Generally, you will have to file a nonresident return if your income from everywhere is $10,000 if single or $20,000 if you are married or a civil union couple filing joint return, or head of household, qualifying widow(er)/surviving CU partner.

 

See Nonresidents

 

Here are some things you can check:

 

Verify that you are filing a nonresident NJ return in TurboTax.

 

In the New Jersey section, you’ll see a screen “Other situations that may apply to you.” Check the box I need to verify my main form or residency selection.

 

Then continue. On “New Jersey Main Return” it should say New Jersey Nonresident Individual Income Tax Return.

 

Also, double-check to make sure you have NJ in Box 15 of the W-2 screen in TurboTax.

 

If you have no NJ tax due but had $63.90 of NJ tax withheld, you can file a return to get a state refund.

 

Please feel free to reach out to TurboTax Community if you need additional help or click here for information on Turbo Tax Support. You can connect with a Live Agent over the phone and share your screen.

Thank you, @ErnieS0  ! For me, My total income is above the threshold, but the "state wage" box 16 on W2 for NJ is much less than the threshold. 

I just confused about the definition of "gross income", is it all the income or just the one listed under the state (box16)?

 

Also, could u specify where I can find “Other situations that may apply to you.”? I have ready e-filed my federal tax. And on the state tax tab of the software, it does not show nj.

 

 

 

The New Jersey part-year and nonresident filing threshold is based on gross income from everywhere for the entire year, not just NJ income.

 

See Part-Year Residents.

 

You would have to file a NJ return if your total income was more than $10,000 if filing single or $20,000 if filing as a married or civil union joint couple, head of household, or qualifying widow(er)/surviving CU partner.

 

You are probably not seeing NJ because TurboTax only gives you one free state. Tap Purchase State. Since you did not start California, you may be able to use NJ as your free state.

 

If you lived in only NJ and Washington in 2022, I don’t know why you have California, unless you also worked in California.

 

I don’t know where TurboTax is asking about other tax situations.

Thanks @ErnieS0 ! Got it! Threshold is based on all the income rather than box 16 on W2, then I need to file one. My husband's employer is in California, so we have California there.

 

Just to be clear, we lived 0 days in NJ and have 0 NJ employer in 2022. My employer is in WA, but i lived partially in NJ in 2021. My annual reward received on 2022 is for Fiscal year 2021 ( june 2021-june 2022), which I think is devided into WA and NJ due to partially residency in 2021. Please let me know if this impact whether I need to file NJ.

Your annual reward would be taxable if it was earned due to your New Jersey employment. That’s why your employer withheld NJ tax. If you have questions you can speak with your HR department. It’s the same as if you quit your job and moved and your employer paid out unused vacation.

 

I suggest reporting whatever is listed as NJ wages in Box 16 of your W-2. However, if you think only half should be NJ income, the non-resident return allows you to state how much income you earned in NJ. If the amount is different from your W-2, you may get a letter from NJ, but as long as you have some type of documentation, you won't get into any trouble. You'll just have to respond and explain the difference.

 

Normally you get a tax credit on your home state return on double-taxed income, but since Washington has no income tax, you cannot claim a credit for tax paid to NJ or CA.

thanks @ErnieS0 ! I think now you are kind of on the same page about my situation ( 0 days NJ in 2022, 0 employer in NJ 20222. but has a WA employer reward received in 2022 for FY21, which contains periods of ~2 month that I was in NJ).

 

Now, I am confused again:

1. you mentioned in your lastest reply, " reporting whatever is listed as NJ wages in box 16", then it is only ~$3000< the filing threshold $20000. Does this mean I dont need to file NJ tax return?

I dont have detailed knowledge on how to validate box 16, so I would just believe my HR department did the correct number there.

2. If the only reason to file a NJ tax return is to get some refund. The withholding from NJ is ~$60, I dont care if they need to give me some refund. I dont have to do the tax return for getting that money back. Will this be a problem if they audit me?

3. In my situation, is there ANY chance I owe money for the tax? That is the only worry I have

4. You mentioned " allows you to state how much income you earned in NJ. "  This you mean the column B on NJ1042NR, right? For column A, it is still my real total income, although it has nothing to do with NJ except the box 16 amount. If I put my real total income there, does NJ just tax me on my real total income rather than box 16?

5. If I need to file NJ, I dont even know how to do it. Can I still use my turbotax? How can I do it as NJ did not pop up for me? 

6. You mentioned "If the amount is different from your W-2, you may get a letter from NJ, but as long as you have some type of documentation, you won't get into any trouble. You'll just have to respond and explain the difference." What numbers? do you mean box 16 may be different from what they have record as my income? Why that would be different? Will they use my real total income? If so, I wont get into trouble by arguing that my W2 box 16 for NJ is just ~$3000? And this is under the circumstances that I file NJ tax return, right? What if i dont file one?

Thanks!

No, you need to file in NJ because you have some NJ income and your total income from everywhere is more than $10,000 if single or $20,000 if you are married.

 

2. If you don't bother, you may get contacted by NJ about it in the future.

 

3. I doubt you would owe more than the amount that was withheld, but the only way to be certain is to complete the NJ state return. 

 

4. Yes, Column A is your entire income as shown on your federal return. Column B is the amount attributable to activities in NJ. The NJ tax return calculates NJ tax on your entire income and then prorates that amount by the NJ income. 

 

For example, say your federal income is $100,000 and your NJ income is $3,000. The NJ tax on the $100,000 would be multiplied by 3% to arrive at your NJ tax as a non-resident. 

 

5. Yes, you can do your NJ return in TurboTax. If you are still working on your tax return, click on State on the left side menu, then +Add State toward the lower left corner. Select  New Jersey and Continue.

 

If you completed and filed your 2022 tax return, log back in, scroll to the bottom, click on 2022 and click Add State. 

 

6. Yes, your NJ income as reported by your employer is the amount in box 16 on your W-2. If you think it is wrong, you can contest that, but you can expect that NJ will not agree. 

Thank you, JulieS and ErnieS0 for the very detailed reply!