Schedule COJ: Credit for Income of Wage Taxes Paid to Other Jurisdiction (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Schedule NJ-COJ calculates the credit for income or wage taxes paid to another jurisdiction for 2025. It reports income taxed by both New Jersey and the other jurisdiction, the tax paid to that jurisdiction, and the credit allowed on Form NJ-1040.
Who files this form
The 2025 Schedule NJ-COJ is used to claim a 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 forms and figures available:
- Your Form NJ-1040, including income from line 29, taxable income from line 39, and New Jersey tax from line 43.
- The other jurisdiction’s name and code, 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 tax on Schedule NJ-COJ, line 6.
- Worksheet H, lines 1 and 2, for the entries requested in box 5a and line 5, as applicable.
If you are eligible for a property tax benefit, the schedule requires you to complete 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.
- 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.
- 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 make no entry on lines 41 or 56.
- If you are eligible for a property tax benefit, complete Worksheet I to determine which property tax benefit is greater.
- 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. This amount cannot exceed line 2, which comes from Form NJ-1040, line 29.
How is the maximum allowable credit percentage calculated?
Divide line 1 by line 2 and enter the percentage on line 3.
How much credit can I claim?
Multiply line 7 by the percentage on line 3 to get line 8. 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 the Property Tax Deduction or Property Tax Credit gives you a greater benefit. The schedule refers you to page 25 to determine eligibility.