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Screen NJSTCr - New Jersey Credit for Taxes Paid to Other Jurisdictions (1040)
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Overview
Use this screen to complete Schedule NJ-COJ Credit for Income or Wage Taxes Paid to Other Jurisdiction when filing New Jersey Form NJ-1040.
State Income and Tax Information
Process the nonresident state prior to completing the resident return for UltraTax CS to calculate amounts from other state returns.
note
Reciprocal agreement with Pennsylvania means wages from Pennsylvania can't be used to claim a credit. Philadelphia wage tax will calculate a credit.
UltraTax/1040-NJ automatically prints copies of state returns for integrated nonresident states for which the credit for taxes paid to other states has been calculated, but is set not to print these copies. New Jersey doesn't require the copies of the nonresident states until they're requested, therefore, the New Jersey return collation item (select
Setup
, 1040 Individual
, the New Jersey
tab, then Tax Return
) and make sure that NJ copy, other states
has been set to Never
.Income
New Jersey allows the lower of New Jersey or other jurisdiction’s taxable income. Limitation is based on the income categories as defined by New Jersey. Use the force fields to move income from the category used by other jurisdiction to the category used by New Jersey.
Total taxable income as calculated by the other state
New Jersey allows a credit for the lower of the income actually taxed by New Jersey or the other state. The Credit for Tax Paid Tax Income Worksheet will calculate per the Publications GIT-3B and GIT-3W to calculate the lower of the 2 incomes based on type. It will then compare this total to the actual amount taxed by the other state and it will take the lower of the 2 per the publication instructions.
Tax paid to other state or jurisdiction
New Jersey requires the income qualified for the credit to be limited first based on the way New Jersey taxes the income and then again by comparing to how the other jurisdiction taxed the income. No credit will calculate if the other jurisdiction didn't tax the income.
note
- If the income taxed by New York amount has been adjusted, the tax also reflects that adjustment amount.
- A minimum of 1 Schedule NJ-COJ is completed for each unit of the NJSTCr screen. When a state and a city located in the state tax the same income the state and city should be entered on the same input screen.
City 1 Information
Use these sections to enter city taxes paid for cities within the jurisdiction indicated in the
Postal code / jurisdiction name
fields. Use these sections for those cities that don't require a combined calculation. If a combined calculation is desired for a particular jurisdiction and the cities within that jurisdiction, enter all information in the 1st section of this input screen. Up to 2 cities can be entered for a single jurisdiction.- A Philadelphia return is rarely required to be filed with the city. When a Philadelphia return is calculated via UltraTax CS, an automatic transfer of the wage tax paid occurs. When a Philadelphia return isn't required, an automatic calculation via UltraTax CS can still be produced without the Philadelphia return being calculated.
- To override the wage amount calculated, enter the amount in theIncome taxed by cityfield. For cities other than Philadelphia, New York City UBT, Yonkers, Kansas City, and St. Louis, an automatic transfer doesn't take place. Enter the income taxed by that city and the tax paid to that city in total, using 1 city section only.
City code and city name
For nonresident New York, nonresident Pennsylvania, or nonresident Missouri returns with New York City UBT, Yonkers, Philadelphia, Kansas City, or St. Louis returns, UltraTax CS automatically enters the city code in these fields. If you manually prepared a New York City UBT, Yonkers, Kansas City or St Louis return, enter the city code in this field. If you manually prepared a Philadelphia return, an automatic calculation still takes place if data has been entered correctly in the federal W2 screen as noted above. If none of these situations applies, enter the city code
OTH
for Other.Income taxed by city
For a nonresident New York return with New York City UBT or Yonkers returns, or a nonresident Missouri return with Kansas City or St Louis returns, UltraTax CS automatically enters the taxable income amount in this field. If you manually prepared a New York City UBT, Yonkers, Kansas City, or St Louis return, enter the taxable income amount in this field. If data entry requirements noted previously have been followed in the federal W2 screen for Philadelphia, a calculated amount transfers to the
Calculated
field. New Jersey Bulletin GIT-3 requires a calculation using the wage tax rate and the wage tax paid for Philadelphia. To override the calculation, enter the wages subject to tax by Philadelphia in the Force
field. If none of these situations applies, enter the income taxed by the other city in the Force
fields.Tax paid to city
For a nonresident New York return with New York City UBT or Yonkers returns or a nonresident Missouri return with Kansas City or St Louis returns, UltraTax CS automatically enters the tax paid amount in this field. If you manually prepared a New York City UBT, Yonkers, Kansas City, or St Louis return, enter the tax paid amount in this field. If data entry requirements noted previously have been followed in the federal W2 screen for Philadelphia, the tax paid appears in the
Calculated
field. To override the calculation, or to enter another manually prepared city tax, use the Force
fields.City 2 Information
Use these sections to enter city taxes paid for cities within the jurisdiction indicated in the
Postal code / jurisdiction name
fields. Use these sections for those cities that don't require a combined calculation. If a combined calculation is desired for a particular jurisdiction and the cities within that jurisdiction, enter all information in the 1st section of this input screen. Up to 2 cities can be entered for a single jurisdiction.City code and city name
For nonresident New York, nonresident Pennsylvania, or nonresident Missouri returns with New York City UBT, Yonkers, Philadelphia, Kansas City, or St. Louis returns, UltraTax CS automatically enters the city code in these fields. If you manually prepared a New York City UBT, Yonkers, Kansas City or St. Louis return, enter the city code in this field. If you manually prepared a Philadelphia return, an automatic calculation still takes place if data has been entered correctly in the federal W2 screen as noted previously. If none of these situations applies, enter the city code
OTH
for Other.Income taxed by city
For a nonresident New York return with a New York City UBT or Yonkers returns, or a nonresident Missouri return with Kansas City or St Louis return, UltraTax CS automatically enters the taxable income amount in this field. If you manually prepared a New York City UBT, Yonkers, Kansas City, or St Louis return, enter the taxable income amount in this field. If data entry requirements noted previously have been followed in the federal W2 screen for Philadelphia, a calculated amount transfers to the
Calculated
field. New Jersey Bulletin GIT-3 requires a calculation using the wage tax rate and the wage tax paid for Philadelphia. To override the calculation, enter the wages subject to tax by Philadelphia in the Force
field. If none of these situations applies, enter the income taxed by the other city in the Force
fields.Tax paid to city
For a nonresident New York return with New York City UBT or Yonkers returns or a nonresident Missouri return with Kansas City or St Louis returns, UltraTax CS automatically enters the tax paid amount in this field. If you manually prepared a New York City UBT, Yonkers, Kansas City, or St Louis return, enter the tax paid amount in this field. If data entry requirements noted previously have been followed in the federal W2 screen for Philadelphia, the tax paid appears in the
Calculated
field. To override the calculation, or to enter another manually prepared city tax, use the Force
fields.