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Good Morning,
When exiting NJ, on sale of primary residence, there's mandatory backup withholding. Where does that get inputted on return? NJ withheld 15k as exit tax (non resident tax).
GK
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Enter it as an estimated payment
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Closing document states "Nonresident tax withheld" $15080.
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THERE IS NO SUCH THING AS A NJ EXIT TAX. (Repeat over and over until you get it right.)
It is a non resident withholding which must be reported and filed on either a NJ 1040 NR or part year NJ 1040 if the TP qualified for the IRC Sec. 121 exclusion.
THEN you get the money refunded. Be certain to enter the withheld tax on the correct line as "tax witheld on real estate sale" or whatever it says or NJ will not refund it.
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Thank you so much sir. You are very correct , it is a nonresident tax. Can i enter this amount in line 56 of NJ 1040 as "tax witheld on real estate sale". or kindly advise where should i enter it.
GK