State income tax

Hi @kbulwin ,

Thank you for joining us today!  It is likely that you will need to file a New Jersey Non-Resident return.  New Jersey requires non-residents to file a return if their gross income from all sources is great than $10,000 for single taxpayers ($20,000 for married filing joint taxpayers).

Here is a good tool to estimate your New Jersey state taxes.  You will need to determine your filing status and estimated income.  New Jersey State tax tool   Remember this is just an estimate and your actual taxes can vary based on your final information.

TurboTax can help you create the non-resident return when you prepare your taxes.  When you are completing the Personal Information section within your Federal return you would select that you "made money in another state" (New Jersey). 

In the state section of TurboTax the non-resident New Jersey return will populate and you will be able to answer the Interview questions within TurboTax to allocate your New Jersey income to the state return.  You will only be taxed on the New Jersey earned income.

Here is a link to step by step instructions to preparing a non-resident return within TurboTax.  How to prepare a Non Resident Tax return   .

Thank you!

Melanie

Hi,

Great instincts and great question!

You have to pay New Jersey tax on the income that you earn while you are working in New Jersey. It doesn't matter where your employer is located or where your permanent home is. You have to file a New Jersey nonresident tax return and pay NJ tax on the income that you earned while you worked in NJ.

It also doesn't matter that your paycheck does not identify it as NJ income, although it should. Ideally your employer would withhold NJ tax while you are working in NJ. (Obviously you have to tell them where you are working.) If they do not withhold NJ tax, you should make NJ estimated tax payments to avoid owing a large amount when you file your tax return, plus penalties for not having paid during the year.

There is no double taxation, since Florida has no personal income tax. You pay tax only to New Jersey. And of course, since there is no Florida tax return, you do not get credit from Florida for the tax that you pay to New Jersey.

This information from NJ provides more detail.

Hope this helps!

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Best,

Karen