[krishanj]

Hi,

I live in NJ but worked in NY and New Jersey. How do I find the income actually taxed by New York? I am trying to do the New Jersey Tax return and want to know which income should I use from IT-203 New York Non Resident. Is it line 1, wages, salaries, or line 36, New York taxable income, or something else? This is to find out the credit for income paid to other jurisdiction on the nj form.

Thanks.

[ebaines]

For NJ you don't actually report what your NY income is; rather, you report all your income. Then you calculate the NJ tax as if your income was all earned in NJ, then you take a credit for the tax paid to NY. For example, on line 14 of NJ-1040 you report all your wages, even though they were earned in NY, then on line 39 you subtract out the tax you had to pay NY, which you can get from line 55 of your IT-203. Hope this helps.

[krishanj]

Thanks for your reply. But what income do I use for New York on my New Jersey return to calculate NJ - 1040 Line, 39, Credit for Income Paid to other jurisdiction. Is it line 1, wages, salaries, or line 36, New York taxable income, or something else? Any help would be appreciated.

Thanks;

[ebaines]

Your report your wages on NJ-1040 line 14. This should be the amount as reported on your W-2 "Wages Tips and other compensation." Line 39 on the NJ-1040 is the amount of tax you paid to other jursidictions - in this case the amount you paid to NY. NJ is not asking how much income you made in NY. So I say again - on line 39 you report the amount from your IT-203 line 55.

[leep]

I am having the same problem. I live in NJ but work in NY. I had been using my NY taxable income (IT-203 line 36) for the credit calculation in the NJ Schedule A line 1, but I just got a tax due notice from NJ saying I should have used my NY AGI (IT-203 line 31). I use TaxCut and their Tax Advisor tells me to use taxable income. This is very confusing.

[MIBOO7]

Yes its confusing and I am still not confirm what to enter.

I user TaxAct Online and they say the amount on Line 36 instead of Line 31 (Column for NY).

Do anyone have confirm answer to this?

[ebaines]

I must confess that I was incorrect in my previous post - sorry for the confusion. The amount of income that is taxable by the other jurisdiction (in this case NY) which you report on NJ's schedule A line 1 comes from line 31 of NY's IT-203, the New York State column. I hope this helps clarify it.

[MIBOO7]

Thanks

[leep]

Yes I can confirm that you use line 31 of NY's IT-203. I finally broke down and went to an accountant to get it straight.

[MukatA]

If you are present in a state, then any income earned during this period, must be reported to the state.

To your resident state, you must report your worldwide income for the year or for the residency period. If you paid taxes to another state, then you will claim credit for those taxes.
Read: Your U.S. Tax Return: Working or Living in Two or More states

[sriayer]

On the same topic: my employer has stated the same wage on both NY and NJ W2s. When I completed the federal return, I entered NY wage and NJ wage on lines 15. I then completed NY state return, which seemed to be fine. When I opened NJ state return, the state wage now shows sum of NY and NJ wages (ie 2 times my federal wage). How should I fix this? I believe if I edit the form directly, I won't be able to e-file in taxcut. Is that right? Please help

[Sigma974]

NJ Schedule A instructions say:

"When claiming credit for taxes paid to
New York, Line 1, Schedule A of the
NJ‑1040 should reflect the “New York
State Amount” actually taxed by New
York from the New York IT‑203. Certain
adjustments may be necessary
to determine the income actually taxed by New
York State."

The New York State Amount "actually taxed" is line 36, not line 31.

Line 36 is "New York Taxable Income"
Line 31 is "New York Adjusted Gross Income"

The income "actually taxed by New York State" is clearly line 36, and if they tell you otherwise you should fight it.

My Wife works in NY and I work in NJ (both NJ Residents, Married, filing joint), our NY State "Taxable Income" on It-203 is actually much higher than her gross income in NY because NY is actually taxing us based on our combined income. Therefore, this is the amount I use on the NJ Schedule A as it is the amount NY is actually taxing us on, which is exactly what the Schedule A says to do.

[sturu]

While the comment of Sigma974 seems reasonable, it is not consistent with what is stated on pages 5 and 8 NJ Bulletin GIT-3W.

[AtlantaTaxExpert]

Sturu,

You are aware that you have commented on a post that is OVER two years old and thus probably irrelevant at this point in time, right?

[sturu]

AtlantaTaxExpert,

I am aware of the date of the post on which I have commented. However, I am not aware of any change in New Jersey's position on the issue since the date of that post. Therefore, I believe my comment may be relevant to anyone who, like myself, is researching the issue and comes across this thread of comments.

[AtlantaTaxExpert]

Okay, just understand that when a comment is posted to a thread, emails go out to everyone concerned.