Question

Daivone, a single taxpayer, lives in NJ but works for a company based in NY. His total salary was $200,000 in 2018. His work assignments were in NY and Florida. He had no other income in 2018. He does not own or rent any property in NY. 25% of his salary was earned for the days he worked in Florida and 75% for days worked in NY during 2015. He filed a NY non resident income tax return and his NY tax was $12,000. His NJ resident income tax is $15,000 on his full salary of $200,000. How much NJ tax will he pay NJ after subtracting the maximum credit on his NJ return for tax he paid to NY?

A. $3,000

B. $3,750

C. $7,500

D. $12,000

E. no credit allowed because Florida has no income tax

Answer 1

Ans - A 3000

ans dual-status taxpayer is someone who is a resident alien and non-resident alien in the same tax year, which mostly occurs in the year the person enters or leaves the country

. If you have paid or are liable for the payment of income tax to a foreign country on income from foreign sources, you may be able to claim a credit for the foreign tax.You can choose to take the amount of any qualified foreign taxes paid during the year as a foreign tax credit or as an itemized deduction. To choose the deduction, you must itemize deductions on Form 1040