Tax Law (Questions About Taxes)/NJ tax


NJ schedule ABC form says divide line 2 into line 1.

I have on line two 40,000 and line one 10,000
Will it make 4 or 1/4?

It makes a confusion because they use word "into" instead of "By"

10/40=.25=25% credit

If your tax in NJ is 100 and tax in state x is 30, you can only offset your NJ tax by 25.  If your tax in state x is 20, you only get a 20 cr we sit in NJ

Lesser of not actual tax paid.    Essentially it is rate arbitrage. If you also worked in higher tax state NJ only loses the pro rata amount you would have paid if you earned the income in nj.  Not the amount you actually paid the state

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts




Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

AICPA, CSCPA (Ct society), National Tax,

a bunch.

MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

©2017 All rights reserved.