Received letter from NJ - to verify income for 2020 Return?

[taxhelpplz]

Hello,

This is how I filed our taxes for the year 2020 (after talking with turbo tax support so many times), my job employer is in NJ and my spouse job employer in NC, my domicile is in NJ and we own a home in NJ, my spouse domicile is NC and we own a home in NC too, we are filling taxes jointly, due to COVID-19 & new born baby in the year 2020, I stayed mostly in NC, worked remotely in NC.

We have stayed in NJ in 2020 approx. 20 nights, and worked remotely. Rest of the time & work in NC. 

This is how we are filling taxes - because my employer is in NJ, so my taxes are withheld in NJ, for NJ i’m filling part year resident (20 nights, even though i worked 14 days), and for NC i’m filling part year resident too. for my spouse, it’s full year resident in NC. The way I did wage allocation is by dividing my wage income by 365 days, to get one day average income, and multiplying by number of days i lived in NJ. I was told, i don’t need to do the same for my spouse even though she worked remotely in NJ for few days, because it’s less than 30 days. For me as well less than 30 days, but my domicile is NJ, so i need to file NJ tax return. 

Since my employer is in NJ, I received my W2 for NJ. Since I stayed in NC most of the year, I allocated my NJ income as income earned in NC, that's how i filed my tax returns.

NC accepted my return, but NJ returned with a letter (on Nov 1, 2021)  - stating - 

1. Share 2020 W-2 - No problem I can share it

2. W-2C or letter from your employer indicating the correct amount of NJ sourced income during your period of residency.

2.1 If you continued to work in New Jersey for the same employer once you moved out of the state, the employer statement must confirm the amount of New Jersey sourced wages earned while you were non-resident. You also must file a part-year nonresident return (NJ-1040NR), prorating both the wages and withholdings.

Since my employer wasn't aware, I worked from NC state, the same isn't reflected in my w2. I don't think my employer can provide such a letter. Though I can provide proof, I stayed in NC.

For these very reasons, I purchased turbo tax desktop audit support, audit support told me, to not reply to NJ's letter, wait for them to send a second letter about what to do. Audit support told me since you can't have a letter from your employer, you have to correct your NJ, NC returns.

What should I do? Continue to wait? I've to file my 2021 tax returns as well. And my federal tax return isn't accepted and yet, I'vent heard about it yet.
I'll have the same situation for the year 2021, even though I lived in NC, but I'll file as if NJ full-year resident for myself. 

[MaryK4]

Just to clarify, did you file your New Jersey tax return as a nonresident? @taxhelpplz

[fanfare]

whatever audit support told you,

NJ penalties and interest add up fast, so you should resolve this matter as soon as possible.

[taxhelpplz]

I filed part year resident. Indicating the income, I earned, while leaving in NJ.

[taxhelpplz]

I expect a refund from NJ. Can they still penalize on this?

Also, what should i do next, do you agree with Turbox Tax Support - amend the return - I think, I can file as NJ full year - part year resident ?

[fanfare]

when you are a part year resident and a non-resident (NJ sourced income) 

you have to file two tax returns to NJ.

[taxhelpplz]

How do I contact NJ Tax Department? to answer my questions. I tried reaching their number, they never pick the phone.

How long my 2020 tax return can be in hung state?

Does it impacts, when filing 2021 NJ Tax Return, even though my 2020 Tax return isn't accepted yet.

Thank you

[fanfare]

If you file now as a full year resident of NJ,

then you are a non-resident of NC.

New Jersey won't have any problem with that.

NJ will give you a credit for tax paid to NC.

[taxhelpplz]

Thank you

How do I contact NJ Tax Department? to answer my questions. I tried reaching their number, they never pick the phone.

How long my 2020 tax return can be in hung state?

Does it impacts, when filing 2021 NJ Tax Return, even though my 2020 Tax return isn't accepted yet.

Thank you

[fanfare]

if NJ  says you owe  and you file for a refund, NJ will take it.

you have three years to file for a refund.

if you're not getting a refund, you should file by the due date April 18th.

After April 18th you will probably get through on the phone.

[taxhelpplz]

How do I contact NJ Tax Department? to answer my questions. I tried reaching their number, they never pick the phone.

[JohnW152 · Accepted solution]

There should be contact information in the letter received.  This would be your best bet, since it’s the likeliest way to get through to the office that sent you the letter.

You can also find the New Jersey Division of Taxation’s contact information at NJ Division of Taxation - Contact Us.  

They’re bound to be extremely busy this time of year, as you suggest.  If you still have trouble getting through by phone, you might try emailing using the information in the link above.  That way, at least you’ll have a record of trying to remedy the situation.