Vassilidze v. Director, Division of Taxation

DeALMEIDA, J.T.C.

This opinion addresses whether the New Jersey gross income tax credit established in N.J.S.A. 54A:4-1 for taxes paid by residents to other jurisdictions is available to a New Jersey couple who paid income taxes to Pennsylvania on wages earned there, even though Pennsylvania ceded its authority to collect tax from New Jersey residents on employee compensation for the tax year in question. For the reasons explained more fully below, the court holds that the resident credit is not available in such circumstances because income taxes paid to a State that has relinquished its…