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Income taxes paid to other jurisdictions

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

Re: Income taxes paid to other jurisdictions

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

Re: Re: Income taxes paid to other jurisdictions

Thanks. That is a perfect explanation.

Zip Code: 02392