New Jersey normally does not tax income for work unless the worker was physically present in New Jersey when doing the work. There is an exception during Covid that provides for work to be sourced to a state dependent on the employer's jurisdiction, as determined by the employer.
So, it seems your employer has determined that your income should be assigned to New Jersey. The only thing you can do for practical purposes is convince the employer to correct the W-2 form, or treat the income as New Jersey income. The problem is that as long as the income is assigned to New Jersey on the W-2 form, the state of New Jersey will consider it New Jersey income no matter what you say.
So, you should treat the New Jersey income reported as such on your W-2 form, and enter a credit for taxes paid to another state on your Maryland tax return so you don't get double taxed on the income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
