Multi-State Question

[Joyce and Sheba]

I live in New Jersey and work in New York. Do I have to file two separate income tax returns, and would I have to purchase two TurboTax softwares??? 

[JohnB5677]

Yes, you would have to file two state returns.  One for your resident state of New Jersey, and a second for the state that you work in (New York).

No, you do not have to purchase two sets of software, but you will have to pay separately for each state.

[Joyce and Sheba]

Thank you so much, John. My cousin is going to do my taxes through TurboTax. 

I have one more question. I replaced my hot water heater last year. Can I claim that as an energy saving tax deduction??? 

[JohnB5677]

Possibly, You'll need written certification from the manufacturer that your product qualifies for the tax credit, which is typically found on the manufacturer's website or in the product’s packaging.

Taxpayers should not attach this to their tax returns, but keep it on hand with your other tax records.

There is a  limit for residential energy property costs in 2021 of $50 for an air circulating fan; $150 for any qualified natural gas, propane, oil furnace, or hot water boiler; and $300 for any item of energy-efficient building property.

[Joyce and Sheba]

Thank you, John. I'll reach out to the hot water heater company to find out if my heater is energy efficient or qualifies. I may have an energy sticker on the heater.

Thank you for answering all my questions!