Last year, my wife and I both lived in New Jersey. She worked in New Jersey, whereas I worked in New York. How do I claim a credit for "income taxes paid to other jurisdictions"? Do I claim it on both state returns, or just my New Jersey return for the amount I paid to New York?

Zip Code: 02492

Here's what you need to do.

You first pay taxes in the state where you worked but did not live. You file in that state as a non-resident.

You then include that income in the tax return for the state where you lived during the year, and calucate the tax on that income. You then take a credit on that state's return for taxes paid to the other state as a non-resident.

So in your case, you'll file in NY as a non-resident, and only report the income you earned in NY. You then report all your income to NJ, and take a credit on your NJ tax return based on the taxes paid to NY on the income earned in NY.

I hope this helps you out.

Zip Code: 01801

Thanks. That is a perfect explanation.

Zip Code: 02392