Friday, April 30, 2010

Why won't turtobax include mortgage interest paid in NJ state deductions?

I work on NJ, live in PA, pay a high interest on my home in PA. I was filing NJ tax return using turbotax, but it doesn't ask or include mortgage interest paid as a deduction. Can't I claim deductions in my NJ tax return?Why won't turtobax include mortgage interest paid in NJ state deductions?
If you live in PA, you do NOT file a NJ return even if you work in NJ. NJ and PA have a reciprocity agreement so you ONLY file in your home state if you worked in one and lived in the other.





Edit: If they withheld NJ tax in error, you file a non-resident NJ return showing $0 income and the NJ tax that was withheld. Attach an explanatory note to expedite things. Then file your PA resident return and pay any tax due.





Make SURE to correct this with your employer. They need to stop withholding NJ taxes. If possible have them withhold PA taxes. If they won't or can't withhold PA taxes you'll have to start making estimated tax payments to PA to cover your tax liability.Why won't turtobax include mortgage interest paid in NJ state deductions?
You're welcome. TFTP.

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One you only file in PA the have an agreement. Second mortgage interest is not deductable for state taxes, only Federal

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