NJ EXIT TAX

5 replies
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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

ProSeries Professional

This topic has been closed for replies.

SkylaneAnswer

Intuit Community Champion

Enter it as an estimated payment

If at first you don’t succeed…..find a workaround

dkh

Level 15

I'm not familar with the NJ Exit tax but.. I'd start with Tax Payments Worksheet. Possibly line 18.

What is the form that shows the backup withholding ?

G

gk77_2Author

Level 6

Closing document states "Nonresident tax withheld" $15080.

Accountant-Man

Level 13

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.

** I am "Elevating with Intention!"

Skylane

Answer

Intuit Community Champion

Enter it as an estimated payment

If at first you don’t succeed…..find a workaround

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