NJ Resident Working in NYC - Unexpected Tax Owed to Both States in FreeTaxUSA

abhijaini
abhijaini Member Posts: 1 Newcomer
in Income

Hi Tax Experts,

I'm a New Jersey resident working in New York City, and I'm using FreeTaxUSA for the first time to file my tax returns. I've encountered an issue that I hope someone can help clarify:

Current Situation:

  • Resident of New Jersey
  • Employed in New York City
  • Using FreeTaxUSA for tax filing

Problem:
The final summary screen in FreeTaxUSA shows that I owe taxes to both New Jersey and New York. However, my understanding is that I should typically receive a refund from New York, which could then be applied to my New Jersey tax liability.

Questions:

  1. Is it normal to see tax owed to both states in this situation, or is this likely an error in my filing?
  2. How can I verify if I've correctly input my information for the NY-NJ tax credit?
  3. Are there specific steps in FreeTaxUSA I should review to ensure proper allocation of taxes between the two states?
  4. If this is an error, what's the best way to correct it within the FreeTaxUSA software?

Any guidance or tips would be greatly appreciated. I want to ensure I'm filing correctly and not overpaying taxes to either state.

Thank you in advance for your help!

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