How do I handle my state if I'm a New Jersey resident who works in New York?
If you’re a New Jersey resident and work in New York State, you’ll need to file a New Jersey resident return and a New York State nonresident return.
New York collects taxes on income you earned while working there. And while New Jersey requires that you report all of your income, including what you earned in New York, they'll give you a credit for your New York taxes so you don't get double-taxed.
Just make sure you prepare your New York nonresident return first, so we can apply the correct tax credit once you get to your New Jersey return.
How can I calculate the other state tax credit as a New Jersey resident who works in New York?
To ensure accurate calculations of the credit on your New Jersey return, always complete the nonresident New York return first.
Here’s how to calculate the other state tax credit for New Jersey in TurboTax Online:
Note: If your TurboTax navigation looks different from what’s described here, learn more.
Select State, then select Start next to your nonresident New York return.
Answer the interview questions and allocate your wages and/or self-employment income earned in New York State.
On the New York Income Allocation screen, answer Yes if all of your wages were earned in New York or answer No if only some of your wages were earned in New York.
If you answered No, you can choose to allocate by days or percentage.
Allocate any deductions that are attributable to New York. If none, enter zero.
Continue through the interview questions until you reach the Let’s Review Your New York Numbers screen.
Take note of the Amount taxed by New York, as well as the Allocated NYS tax amount.
Complete your New York nonresident return and start your New Jersey resident return.
Continue until you reach the Summary of Taxes Paid to Other States screen. The credit amount for your New York taxes should be listed here. To view or edit this amount, select Edit.
On the Tell us about the money you earned in New York screen, you should see your double-taxed income and any amount of tax paid to New York.
Note: The tax amount won't be the tax withheld from your W-2. It'll be the tax you were liable for on your New York return.
If there are any differences from what you noted in Step 5a, enter those amounts under the column Amount if Different.
On the following screen, we’ll let you know your credit amount for tax paid to New York.
