Article: 50488

Overview 

If you are a New Jersey resident and earned income in another state or local jurisdiction that was also taxed by that jurisdiction, you may qualify for a credit on your NJ-1040 to avoid double taxation. This is reported on Schedule COJ – Credit for Taxes Paid to Another Jurisdiction. 

Who Qualifies for the Credit? 

You may claim this credit if: 

• You are a full-year New Jersey resident, and 

• You paid income tax to another U.S. state, District of Columbia, or local jurisdiction (e.g., New York City), and 

• That same income is also taxable by New Jersey, and 

• The tax was not refunded or credited back by the other jurisdiction. 

Note: This credit cannot be claimed for taxes paid to the federal government or to foreign countries. 

How to Report 

1. Navigate to the State Taxes section on the left-hand side of the screen. 

2. Click the link: I’d like to see the forms I’ve filled out or search for a form. 

3. In the dropdown menu, select New Jersey. 

4. Click on the Schedules tab. 

5. Select Schedule COJ – Credit for Taxes Paid to Another Jurisdiction to open the screen. 

6. Enter all applicable information. If you paid tax to more than one jurisdiction, complete a separate entry for each.  

7. Click Save once complete. 

Additional Resources 

For further guidance, see: 2024 New Jersey Form NJ-1040 Instructions (PDF) 

Note: The credit is limited to the lesser of: 

• The tax paid to the other jurisdiction, or 

• The NJ tax imposed on the same income. 

Be sure to use the actual tax paid, not just what was withheld (e.g., from a W-2 or 1099).