Hi,

I have a question about my NJ non-residence tax return filing. I am a residence of Virginia and worked from Jan - Nov 2011. Then I worked in NJ for the month of December (was a residence for less than 30 days there since I commute on the weekend). I sold some stocks in around May of 2011 for a profit. Since this net gain was obtained in May of 2011, I don't need to report this net gain from selling stocks in the NJ non-residence tax return filing, correct? I am asking because for some reason TaxACT included this in my NJ non-residence filing.

Thanks

John

You do not pay any tax to NJ on the sale of stocks. This is not NJ income.

Mukata is correct that you don't pay tax to NJ on income that is not NJ-source. However as a non-resident you must report ALL income for the year to NJ - including your wages from the first job and the profit on this stock sale. The reason is that it determines the appropriate tax bracket for you, which is dependent on your total income for the year. The calculation requires you to first calculate NJ tax as if it was all taxable by NJ, then you multiply that by a fraction representing the percent for your income that is actually taxed by NJ. So yes - you must report it.