All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 1
Registered: ‎02-13-2018

NY Resident - NJ Income - credit not applying in free file program

Hello, I was using the free file program and completing state returns. I live in Manhattan but work in NJ so i filled out the NJ Non resident form and the NY state form using the program. Also, I moved to Manhattan on July 2017 - so lived here for 5 months of 2017

 

My understanding is that for the amount of NJ tax I pay, I get a tax credit for my NY taxes (this is seen in the program). However, I'm not seeing the credit applied.

 

  • My tax liability for NJ is ~1200 but ~2300 got withheld so I get a refund from NJ of ~1100
  • My tax liability for NY is 2700 but shouldn't I get a credit of 1200 from the taxes paid to NJ?
    • The program is not reflecting this change and says I owe 2700 to NY, even thought in the credits portion of the NY return it says I have a non-refundable credit of 1200
    • My NJ employed does not withhold for NY taxes

 

I'm hoping this is a glitch and that I don't actually have to pay double taxes. Thank you for your help!

Associate (Pioneer)
Posts: 65
Registered: ‎02-26-2018

Re: NY Resident - NJ Income - credit not applying in free file program

Hi Jiminy555,

 

This credit is available taxes paid to another state only when you were taxed by both states on the same income. If you allocated your income between NJ and NY based on when you earned it and where you lived so that there is no overlap in income, then you don’t qualify for the credit. However, your tax liability to NY will be lower because you have less income allocated to them to begin with. From what you’re saying, it sounds like you need to go back into your NY return and make sure you allocated your income properly in the INCOME section of your New York return.

 

Florian

Tax Research Specialist

Pioneer
Posts: 1
Registered: ‎04-06-2018

Re: NY Resident - NJ Income - credit not applying in free file program

Hello,

 

Somewhat similar issue in that I lived in NJ for all of 2017 and worked in Delaware.  I completed my Delaware non-resident return, went into the NJ return, clicked the "Credit for taxes paid to another state" box but when I click Next, I'm never taken to a screen to input the taxes I paid to Delaware so I have a large balance due to NJ, according to the program.  Please help as I know that is not correct.  Thanks.

Associate (Pioneer)
Posts: 65
Registered: ‎02-26-2018

Re: NY Resident - NJ Income - credit not applying in free file program

Hi dcarlt000,

 

I'm not sure why you're not seeing this credit. If it's not in the credit summary or the tax summary at the end of your return, please chat in with our Ask A Tax Advisor service, one of our agents can help you understand why you're not getting this credit or how to correctly claim it. The following link describes how to get to chat: 

http://community.hrblock.com/t5/Community-Library/How-do-I-access-chat/ta-p/94368

 

Florian F.

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Tax Research Specialist