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NJ EXIT TAX

gk
Level 5

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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Skylane
Level 11
Level 11

Enter it as an estimated payment 

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

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5 Comments 5
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 ?

Skylane
Level 11
Level 11

Enter it as an estimated payment 

If at first you don’t succeed…..find a workaround
gk
Level 5

Closing document states "Nonresident tax withheld" $15080.

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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'm still a champion... of the world! Even without The Lounge.
gk
Level 5

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