New Jersey Tax Division Issues Information on Credit for Taxes Paid to Other Jurisdictions

The New Jersey Division of Taxation Dec. 4 issued information on individual income tax credits for taxes paid to other jurisdictions. The information includes: 1) state residents may qualify for a credit if they paid income or wage tax on the same income in the same year to both New Jersey and to another jurisdiction outside New Jersey; 2) the credit doesn’t apply to income tax paid to the federal government, Canada, Puerto Rico, or any other foreign country or territory; 3) the credit can’t exceed the amount that would have been paid if the taxpayer earned the income in ...