Step-by-Step Guide to Claiming Other State Credit (OSC) for NJ Residents
✅ Step 1: Determine Eligibility
You must be a full-year NJ resident.
You must have earned income in another state and paid taxes there.
The other state’s tax must be similar to NJ’s Gross Income Tax.
✅ Step 2: Gather Documents
Your W-2 or 1099 forms showing out-of-state earnings.
A copy of your non-resident state tax return (e.g., NY IT-203).
A copy of your NJ resident tax return (NJ-1040).
✅ Step 3: Complete Your NY Non-Resident Return
File Form IT-203 for NY non-resident income.
Ensure NY taxable income is correctly calculated.
Pay any required NY state taxes.
✅ Step 4: Fill Out NJ Form 1040 – Schedule A & OSC Worksheet
Report total income (including NY earnings) on NJ-1040.
Complete Schedule A to determine NJ taxable income.
Fill out the Other State Credit (OSC) Worksheet to calculate the eligible credit amount.
✅ Step 5: Claim the Credit on NJ-1040
Enter the calculated credit on Line 45 of NJ-1040.
Ensure it does not exceed the NJ tax on the same income.
✅ Step 6: Attach Supporting Documents 📎
Include copies of your NY return (IT-203) and proof of tax payment.
Submit all necessary schedules and worksheets.
✅ Step 7: File Your NJ Return
Double-check entries for accuracy! ✅
File electronically or mail your NJ-1040 with attachments.
🎯 Pro Tip: Filing electronically speeds up processing and reduces errors! 🚀