NJ resident working in NYC

[Tax-Preparer1]

Hello Proseries community, 

Thank you in advance for all your help i received from this forum. 

Got a situation where a high net worth couple moved, lived in NJ all of TY 2021, and I did remind them last year to tell their jobs about the move…. Not sure if they followed thru. The employer barely  withheld NJ state taxes only for one spouse. 

I did the NY return first, and used the NYS Wages income allocation tab to allocate their NY source income, then calculated their NY owed taxes.

Then I went to the NJ COJ return and made sure he was given a credit for what he paid NY. 

Is there any other advice to be aware of with a NJ resident working in NYC?

[qbteachmt · Accepted solution]

"They can’t get a credit for something they are also getting refunded to them right?"

Remember that "what they paid" is Prepayment against that tax form you are working on. That isn't Taxes Owed. There might be a balance due or a refund owed.

So, yes, they can get credit for something they Owe to another State (the tax, not the balance), even if that State has an overpayment and will send them their overpaid balance. And in some cases, and amount paid or refunded from one year is reportable in the next.

You have to work through the forms.

[Tax-Preparer1]

Thank you!