cowboys15
Level 2
03-08-2021
04:37 PM
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Client lives in NJ. Works in NY, but moved from PA in 2020
W2's: From PA employer: shows Wages, and PA Tax withheld ($460.00)
From NY employer shows wages and NY Tax withheld $7626)
NJ return is not giving total credit (for tax paid in another jurisdiction) for for the PA portion at all, but limits the NY portion which I understand. Why is PA amount not added to the worksheet NJ COJ?
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sjrcpa
Level 15
03-08-2021
04:50 PM
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The credit for tax paid to other states is to mitigate the double taxation of the same income. NJ doesn't tax income earned while the taxpayer lived in PA. No double taxation = no tax credit.
The more I know the more I don’t know.
cowboys15
Level 2
03-08-2021
05:12 PM
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She has no earned income in NJ though... I would think that she would get the whole credit.
