Originally Posted by walkinwood
IIRC, your NY state taxes are deductible from your NJ taxes. Turbotax takes care of it, but remember to do your NY state taxes before your NJ taxes.
Worked the same way when I worked in NYC while living in CT. Always do your Federal return first, then your NY return and do NJ last. Remember also that if you travel for business, you will allocate your tax payable to NY (it is the ratio of days actually worked in NY to days actually worked during the year). If you have an office in NY and work at home, its is the same as working in NY for purposes of the allocation. However, if you traveled to Pennsylvania for work, those days are not
worked in NY. The tax software is sometimes messed up on this allocation, so you need to check the actual physical forms with an eagle eye.
P.S. -- It is even more complicated if your spouse works only in NJ. If you get stuck, try the New York State Taxation Department website for answers