Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.
02-26-2018 09:04 PM
I live in NY and work in NJ.. I pay alimony to my-ex in NY.. we both live in NY... I am filing a resident NY and non-resident NJ tax return. I receive the deduction in NY (as well as federal), but I do not get the deduction in NJ. I looked up NJ non-resident tax code and it looks like I should get the deduction. So I am not sure if this is a bug with the H&R block tax software or if I am missing something?
03-08-2018 02:35 PM
According to New Jersey tax rules for non-residents: Nonresidents (and part-year residents who receive New Jersey-source income while a nonresident) first calculate tax on total taxable income from all sources, the same as full-year residents. Tax is then prorated based on a ratio of gross income from New Jersey sources to gross income from all sources. To compute gross income from New Jersey-source income, include all items of income received from New Jersey sources while a nonresident. Gross income from all sources is total income before exclusions, exemptions, and deductions.
You may deduct Alimony and separate maintenance payments on the actual amounts paid during the time you were a nonresident of New Jersey. The deduction will be shown on line 32 – Column A – Amount of gross income (Everywhere) on form NJ-1040NR. But it will not show on column B – Amount from New Jersey sources.
Since the alimony payment is deducted from Gross income from everywhere, the taxable income amount used to calculate New Jersey tax is already reduced by the deductions.
I would suggest that you print out your tax return to see how your federal and state return is prepared and completed.
This is link to form NJ-1040NR for your information, it will show line by line how the state comes up with your tax.
Form NJ-1040NR: http://www.state.nj.us/treasury/taxation/pdf/current/1040nr.pdf
Instruction for form NJ-1040NR: http://www.state.nj.us/treasury/taxation/pdf/current/1040nri.pdf page 9 and page 29.
Hope this help you out.
Tax Research Specialist.
The Tax Institute at H&R Block.