Court rules foreign source income not taxable in New Jersey February 03 2011 X LinkedIn Email Show more sharing options Copy Link URLCopied! Print X LinkedIn Email If foreign source income is not taxed on a federal level, it will not be taxed on a state level, the New Jersey Tax Court held in the case of IBM v Director. Unlock this content. The content you are trying to view is exclusive to our subscribers. To unlock this content: Take a Free Trial or Login