New York State Non-Resident

1. Module NJ 2.5 New York State Non-Resident Joe McFadden NJ Training TY 2008

2. W-2 With New York Wages • When? Only income is from W-2 Wages and Withholding • Sequence of Tax Returns Preparation: • 1. Federal 2. New York 3. New Jersey • Input “NY” in Non-Resident box on Main Info • When entering data on W-2 TaxWise screen, enter “NY” in State Box vs “NJ” NJ Training TY 2008

3. New York Return NY-IT-203 • On page 4, line 74 enter “NO” regarding maintaining living quarters in NY • Refund Section – Check appropriate box • Check Page 2 for automatic entries from Federal input • NY Additions, line 20-22 • NY Subtractions, line 24-29 • NYS Itemized Deductions line “a” to line “n” NJ Training TY 2008

4. New Jersey Return • Bring up NJ Schedule A screen entitled “Credit For Income Taxes Paid To Other Jurisdictions” • Line 1 Insert NY Wages per W-2 (Line 1 of NY IT-203) and enter “NY” • Line 9a Insert Total Tax Liability per NY Return (Line 50 on NY IT-203) • NJ 1040 line 39 now shows credit for tax paid to NY. • Insert “32” in Other Jurisdiction Code block NJ Training TY 2008

5. 414H Withholding on NY W-2 • If NY W-2 box 14 shows an amount for “414H”, enter it as “414HSUB” to have it included in NY taxable income • This amount is excluded from Federal Income but is taxable in NY as Income NJ Training TY 2008