Schedule COJ: Credit for Income or Wage Taxes Paid to Other Jurisdiction (For Tax Year 2017 and prior use Schedule A) (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Schedule NJ-COJ calculates the 2024 New Jersey credit for income or wage taxes paid to another jurisdiction. It reports income taxed by both jurisdictions, tax paid to the other jurisdiction, and the credit allowed on Form NJ-1040.
Who files this form
The 2024 Schedule NJ-COJ is used to calculate the credit for income or wage taxes paid to another jurisdiction on income properly taxed by both New Jersey and that jurisdiction.
What you'll need
Have these items available to complete the schedule:
- Form NJ-1040, including your name, Social Security number, and amounts from lines 29, 39, and 43.
- The other jurisdiction's name, the income properly taxed by both jurisdictions, and the income or wage tax paid to the other jurisdiction.
- The Tax Table or Tax Rate Schedules to calculate the tax on line 6.
- Worksheet H, lines 1 and 2, for the property tax deduction entries.
If you are eligible for a property tax benefit, the form also requires Worksheet I on page 34 to compare the Property Tax Deduction with the Property Tax Credit.
Common mistakes
- Do not combine the same income taxed by more than one jurisdiction.
- Do not enter more on line 1 than the amount on line 2.
- If you are not eligible for a property tax benefit, complete only column B. Transfer line 9, column B to Form NJ-1040, line 44, and leave Form NJ-1040, lines 41 and 56 blank.
- If you are eligible for a property tax benefit, complete Worksheet I on page 34 to determine which benefit is greater.
- On line 9, use the lesser of line 8 or box 9a. The credit cannot exceed your New Jersey tax on Form NJ-1040, line 43.
- Keep a copy of the schedule for your records.
Questions people ask
What income goes on line 1?
Enter income properly taxed by both New Jersey and the other jurisdiction, and identify that jurisdiction. Line 1 cannot exceed line 2, which comes from Form NJ-1040, line 29.
How do I calculate the maximum allowable credit percentage?
Divide line 1 by line 2 and enter the percentage on line 3.
Is my credit always equal to the tax paid to the other jurisdiction?
No. Enter the income or wage tax paid to the other jurisdiction in box 9a. Line 9 is the lesser of line 8 or box 9a, and cannot exceed your New Jersey tax on Form NJ-1040, line 43.
What if I am eligible for a property tax benefit?
Complete Worksheet I on page 34 to determine whether claiming a Property Tax Deduction or taking the Property Tax Credit gives you the greater benefit. The schedule directs you to page 25 to determine eligibility.