I have paid state taxes in NY and NJ, can I deduct the taxes paid to both states or only one state on my schedule A?

Yes, you can deduct both the state taxes paid on your schedule A. This is a very common occurence for NJ residents who commute to NY.

The federal return is very simple, the problem is filing the individual state returns.

You will be required to fill a multi-state tax return, and I would recommend you find a good CPA or tax preparer who is experienced in preparing multi-state tax returns. It will be well worth the money.

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