Thank you for the reply. Let me see if I understand your answer.
I'm married and filling a joint return.
Person 1 - Job location changed from AZ to NJ on 7/15/2020. Income tax easily split between the two States using two separate W2. One for each State. (However, 4 pay periods had both AZ and NJ withheld even though I lived in NJ)
Person 2 - Job location remains AZ even while living in NJ from 7/15/2020 forward.
From 1/1/2020 to 7/14/2020 - We lived in AZ and earned income only in AZ.
File Part Year Resident in AZ.
Person 1 - Income and tax withheld reported from 1/1/2020 to 7/14/2020 based on W2 for AZ.
(Double taxes paid, NJ & AZ from 7/31/2020 to 9/15/2020 (NJ Resident) - transition error by the employer)
Person 2 - Income and tax withheld reported from 1/1/2020 to 12/31/202(?) based on W2 for AZ. (No withholdings for NJ for the entire year.)
From 7/15/2020 to 12/31/2020 - We lived in NJ and earned income in NJ and AZ.
File Part Year Resident in NJ.
Person 1 - Income and tax withheld reported from 7/15/2020 to 12/31/2020 based on W2 for NJ.
Show the double tax paid to AZ (Calculate the income for those 4 pay periods) So NJ can provide an AZ tax credit. (7/31/2020 to 9/15/2020)
Person 2 - No income or tax withheld for NJ based on the single W2? (Nothing to report?) All income and state tax withheld on W2 was only for AZ. Person 2 worked from NJ virtually as an AZ Employee.
Or
Person 2 - Calculate the Income earned working for AZ while residing in NJ from 7/15/2020 to 12/31/2020 so NJ can tax that income. Don't show taxes paid to AZ, even though you paid them. (No AZ credit and pay additional tax on Income already taxed by AZ??)
Person 2 scenario is what throws me off.
Thanks again!!
