[atamir]

Hilarie:
Atamir:

The credit for NY state taxes paid is computed on Schedule A to NJ-1040.

I am using TurboTax and it allows me to ener schedule A, but I'm confused where to find the numbers to enter...

i.e.
Double Taxed income while a resident of nj?
Tax Paid to NYC on double taxed income?

And, would a separate schedule A have to be filled for my wife or is it filed together on both our gross incomes combined?

Thanks again - you have been very helpful!!

[AtlantaTaxExpert]

You want to enter the total taxes paid to both NYC and NY state. You can get this figure from the NY state tax return form (I believe it is IT-203).

If you are filing jointly, then you include your wife's income and taxes paid.

If you are filing separately, then she does her own Schedule A.

[ranjan12]

I moved from NYC to NJ March 1, 2004. I am filing married jointly - spouse has no income. My employer's W2 based in NYC shows only NY state taxes for the whole year and NYC taxes for the period of residence in NYC.
I am using Turbo tax for the state returns. When I compute the NY state return for part year residence, I am getting a refund because of NY state taxes for only 2 months. Do I file a NJ state tax return or should I only file a NY state tax return and allocate 100% to NY. My only income is from NY state- I work in NYC.

[AtlantaTaxExpert]

Ranjan12:

Even though you had no tax withheld for New Jersey, you are still required to file a NJ tax return.

It is likely no taxes will be due because the NY state and NYC income taxes will offset any NJ tax liability.

File the NJ tax return in any event, because you will likely get a $50 refund for either property taxes paid or under the FAIR Rebate for Tenants.

Since you will get a refund, there is no pressing need to file by April 15th. Go online and file an extension with NJ to protect your right to the $50 refund noted above.

[kidqwik]

I'm still confused. I live in NJ and work in NYC. It looks like only NY/federal taxes were taken out of my salary, no NYC and no NJ taxes. Why would I have to report ANY interest or IRA distributions to NY state so they can tax me more money for income that was not earned in NY? From fiddling with the forms, if I add IRA distributions due to death to the calculations for NY, I owe $300 to NY, but if I only calculate the money earned in NY I owe NY around $20. That makes no sense. Why would I owe NY money on income outside of NY when I'm not a resident of NY? Is this the case or and I doing my calculations all wrong?

[AtlantaTaxExpert]

Kidqwik:

You do not report the IRA distribution and interest earned on the NY state tax return.

On IT-203, the income is separated into two columns: Federal Income and New York Income. You would report the IRA distribution and interest earned on the Federal Income column, but not the NY Income column.

Read the instructions carefully. Report only the income that was earned in NY. The total income under the NY Income column is the amount that gets taxed by NY.

As for the NYC income tax, I believe that you only have to pay that if you live in NYC.

[kidqwik]

Kidqwik:

You do not report the IRA distribution and interest earned on the NY state tax return.

On IT-203, the income is separated into two columns: Federal Income and New York Income. You would report the IRA distribution and interest earned on the Federal Income column, but not the NY Income column.

Read the instructions carefully. Report only the income that was earned in NY. The total income under the NY Income column is the amount that gets taxed by NY.

As for the NYC income tax, I believe that you only have to pay that if you live in NYC.

The second page of the NY IT-203 form, line 31, says to enter the Federal Amount. Then on line 35 after I've taken off my $7,500 standard deduction, it says this is my Taxable Income. Then line 36 makes you find your tax from this amount. Lines 42-48 have you dividing your NY State income by your Federal Income(which includes all the IRA dispersements and any interest). Then it ask you to multiply the NY tax amount based on your Federal Income by the decimal you received from dividing your NY Income by your Federal Income and this is the tax you owe. If this holds true, then I would owe $300 to NY due to figures that came about because of none NY income from IRA dispersements. I tried doing it not including my non NY IRA distributions which made my Federal Income the same as my NY Income. In this scenario, I owe NY $20, not $300. So in reality if Federal Income figures are being used, NY State IS taxing me on my income made outside of NY anyway you look at it. Help! :-)

[AtlantaTaxExpert]

Kidqwik:

Since I use tax software, I do not read the instructions line-by-line, but what you are saying does not pass either the common sense test nor federal tax law. New York City got spanked real hard by the federal tax courts about eight years ago because they were taxing non-residents more than their city residents.

You are not a NYC or NY state resident. By law, neither NYC nor NY state may tax you on interest earned nor on IRA distribution, despite what the instructions say. Only New Jersey can tax you on that income.

Put the interest and IRA distribution only in the federal column. Leave the NY state column blank for those lines. Trust me on this! Do the calculations as you outline below and pay the $20.

[taxreturn]

Ranjan12:

Even though you had no tax withheld for New Jersey, you are still required to file a NJ tax return.

It is likely no taxes will be due because the NY state and NYC income taxes will offset any NJ tax liability.

File the NJ tax return in any event, because you will likely get a $50 refund for either property taxes paid or under the FAIR Rebate for Tenants.

Since you will get a refund, there is no pressing need to file by April 15th. Go online and file an extension with NJ to protect your right to the $50 refund noted above.

Hello there,
You have mentioned here that we are likely to get $50 refund for either property taxes paid or FAIR rebate for tenants...
Can you please explain as to how one can get refund on this as I'm also a tenant in NJ

Thanks

[AtlantaTaxExpert]

Newbie:

There has been a property tax credit on NJ state income tax returns for the last five years I have been doing NJ tax returns.

This past year, they expanded the credit to renters. You actually have to pay rent, identify the property you lived in, and the property owner has to have paid real estate taxes.

There is a income test! If you make more than $100,000, the rent credit does not apply.

The form is TR-1040. You can download it as part of the "NJ Resident Income Tax Return" at http://www.state.nj.us/treasury/taxa....htm~mainFrame.

[taxreturn]

Thank you atlanta tax expert.

[AtlantaTaxExpert]

Glad to help!